Analyst Note| Matthew Dolgin, CFA |
A top-line miss but EBITDA beat relative to FactSet consensus estimates is just one illustration of the contradictory nature of Shaw Communications' fiscal first-quarter report. The firm had a stellar quarter with regard to wireless subscriber additions and saw pricing and profitability jump in its wireline segment. However, it continues to shed wireline customers, and the wireless additions were accompanied by lower wireless average billing per subscriber unit and disappointing wireless EBITDA. Overall, we see Shaw making positive strides and believe the stock is undervalued relative to our unchanged CAD 27 fair value estimate.