Cogeco Communications shares drop as Q1 results miss expectations

MONTREAL — Shares of Cogeco Communications Inc. fell by nearly seven per cent Wednesday after the cable and internet provider missed expectations despite a 20 per cent increase in net income in its most recent quarter.

The Montreal-based company’s shares were down $7.62 or 6.7 per cent at $105.30 in late morning trading on the Toronto Stock Exchange.

Cogeco says it earned $84.2 million for the period ended Nov. 30, up from $70.2 million a year earlier.

That translated into $1.70 per diluted share, compared with $1.41 per share in the first quarter of 2019.

Revenue grew 1.8 per cent to $586.8 million from $576.7 million, driven by growth in its U.S. broadband services segment.

The subsidiary of Cogeco Inc. was expected to earn $2.01 per diluted share on $594 million of revenues, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Jan. 15, 2020.

Companies in this story: (TSX:CCA, TSX:CGO)

The Canadian Press