TELUS (TSE:T) Posts Earnings Results

TELUS (TSE:T) (NYSE:TU) released its quarterly earnings results on Friday. The company reported C$0.16 earnings per share (EPS) for the quarter, FiscalAI reports. TELUS had a return on equity of 6.41% and a net margin of 4.57%.The business had revenue of C$4.92 billion during the quarter.

TELUS Stock Down 11.3%

Shares of T stock opened at C$13.38 on Friday. The stock has a market cap of C$20.89 billion, a P/E ratio of 22.30, a PEG ratio of 1.65 and a beta of 0.47. TELUS has a 52 week low of C$12.93 and a 52 week high of C$23.18. The company has a quick ratio of 0.52, a current ratio of 0.67 and a debt-to-equity ratio of 199.56. The company’s fifty day simple moving average is C$15.72 and its two-hundred day simple moving average is C$17.21.

Key Stories Impacting TELUS

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: The dividend reduction is expected to preserve approximately C$2.7 billion in cash, which management plans to use primarily to reduce debt and strengthen TELUS’s balance sheet. TELUS cuts dividend, plans asset sales as new CEO makes his mark
• Positive Sentiment: New CEO Victor Dodig is pursuing asset sales, potentially including parts of the health division, to generate additional funds and improve financial flexibility. TELUS cuts payout, plans asset sales as Dodig makes his mark
• Neutral Sentiment: The CRTC paused deadlines for TELUS, Bell and Rogers to respond to proposed new switching fees. The delay postpones regulatory clarity but does not yet represent a confirmed financial impact. CRTC pauses deadlines for Bell, Rogers and Telus to answer for new switching fees
• Negative Sentiment: Second-quarter earnings were viewed as worse than expected. TELUS reported C$0.16 EPS on C$4.92 billion in revenue, while reports characterized earnings as down 27% and highlighted a quarterly loss under certain measures. TELUS stock slides after disappointing Q2 results
• Negative Sentiment: TELUS will cut its dividend by roughly 55%, a significant negative for income-focused shareholders and a signal that debt levels and cash-flow demands have become serious concerns. TELUS slashes dividend to deploy more cash for debt repayment
• Negative Sentiment: The company’s high leverage, weak liquidity ratios and a pessimistic analyst forecast are adding to investor concerns as the stock trades near its one-year low.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Desjardins reduced their price objective on TELUS from C$21.00 to C$19.00 and set a “buy” rating for the company in a research note on Wednesday, July 15th. Barclays cut their price objective on TELUS from C$19.00 to C$17.00 in a research note on Thursday, July 16th. Morgan Stanley cut shares of TELUS from an “equal weight” rating to an “underweight” rating and decreased their target price for the stock from C$20.00 to C$13.00 in a research note on Tuesday, July 21st. Royal Bank Of Canada dropped their price target on shares of TELUS from C$22.00 to C$20.00 and set an “outperform” rating for the company in a research report on Friday, July 10th. Finally, Scotiabank lowered their target price on shares of TELUS from C$20.00 to C$19.00 and set a “sector perform” rating on the stock in a research note on Tuesday, July 7th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of C$18.68.

TELUS Company Profile

TELUS Digital, a wholly-owned subsidiary of TELUS Corporation (TSX: T, NYSE: TU), crafts unique and enduring experiences for customers and employees, and creates future-focused digital transformations that deliver value for our clients. We are the brand behind the brands. Our global team members are both passionate ambassadors of our clients’ products and services, and technology experts resolute in our pursuit to elevate their end customer journeys, solve business challenges, mitigate risks, and drive continuous innovation.