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had 40 cents per share of adjusted earnings in the third quarter ended May 31, down from 52 cents per share a year earlier. Revenue is estimated at about $1.36 billion, up from Gucci Belt Orange $1.33 billion in the third quarter of fiscal 2013.
Other analysts are less pessimistic about Shaw's long term outlook, but most expect that it continued to lose subscribers during the quarter ended May 31 and that the makeup of its business will be a long term challenge to growth.
Shaw's class B shares were down a penny at $26.39 in trading Tuesday. They hit a 52 week high of $27.50 on June 4.
RBC Capital Markets analyst Drew McReynolds has also given Shaw a neutral "sector perform" and writes that "we believe Shaw continues to execute in a tough but rational competitive environment."
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According to data compiled by Thomson Reuters, analysts on average are estimating Shaw Gucci Belt White Red And Green
Analysts expect Shaw's subscriber base continued to erode in latest quarter
Wireless has been an area for growth for Canada's big telecommunications companies including Rogers Communications, BCE and Telus, who have also worked to maintain a tight grip on customers by offering deals if they bundle their services together.
MacDonald also writes that Shaw was likely able to add subscribers to its Internet services during the quarter "but we do not yet have faith that price increases in cable won't result in subscriber churn in that segment."
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and high speed Internet business in Western Canada, Shaw also owns the Global Television network as well as a full slate of specialty channels including Food Network Canada, History Television and Showcase.
market after it participated in a 2008 wireless spectrum auction, which set aside a portion of the available licences for new entrants.
Macquarie Capital Markets analyst Greg MacDonald, who has a neutral rating for Shaw's stock, agrees that its media business faces above average risk "due to the structural shift in viewership patterns from traditional TV to Internet."
He added that Shaw's media arm also faces competition from Netflix and the possibility of regulatory changes next year that could allow for more channel by channel selections.
Canaccord's 12 month price target for the stock is $24, RBC's is $25, and Macquarie's is $27.
McReynolds also writes that Shaw is "laying the foundation" to deliver annual revenue and earnings growth in the single digits, but, given the price of Shaw's stock relative to estimated earnings, "we would remain patient for more attractive and/or timely entry points."
He expects there was a smaller decline in basic cable subscribers in the latest reporting period and that Shaw's profit margin was stable due to its efficiency initiatives and lack of irrational pricing in the residential markets that it serves.
However, the company signed a deal last year to sell its wireless spectrum holdings as well as its Mountain Cablevision Ltd.
Canaccord Genuity analyst Dvai Ghose writes that he's got a "sell" rating on Shaw stock even though a corporate reorganization announced in April will probably improve efficiency. He expects revenue will be up about two per cent compared with a year ago due to price increases at Shaw Cable and the Shaw Direct satellite TV services.
"But for us, cable TV, satellite TV and home phone are becoming increasingly irrelevant for younger consumers, making price increases in those segments more challenging," Ghose writes.
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