TELUS (TSE:T) Releases Earnings Results

TELUS (TSE:T) (NYSE:TU) posted its earnings results on Friday. The company reported C$0.16 earnings per share for the quarter, FiscalAI reports. TELUS had a negative net margin of 4.55% and a negative return on equity of 6.56%. The company had revenue of C$4.92 billion during the quarter.

TELUS Price Performance

T opened at C$13.38 on Friday. The company has a current ratio of 0.67, a quick ratio of 0.52 and a debt-to-equity ratio of 236.85. The company has a market cap of C$20.89 billion, a price-to-earnings ratio of 22.30, a price-to-earnings-growth ratio of 1.65 and a beta of 0.47. The stock has a fifty day simple moving average of C$15.72 and a two-hundred day simple moving average of C$17.21. TELUS has a 12-month low of C$12.93 and a 12-month high of C$23.18.

Analysts Set New Price Targets

Several equities research analysts have weighed in on T shares. Royal Bank Of Canada dropped their price objective on TELUS from C$22.00 to C$20.00 and set an “outperform” rating for the company in a report on Friday, July 10th. TD Securities raised TELUS from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 28th. Scotiabank reduced their price objective on shares of TELUS from C$20.00 to C$19.00 and set a “sector perform” rating on the stock in a research report on Tuesday, July 7th. Barclays decreased their price objective on shares of TELUS from C$19.00 to C$17.00 in a report on Thursday, July 16th. Finally, Morgan Stanley lowered shares of TELUS from an “equal weight” rating to an “underweight” rating and cut their target price for the company from C$20.00 to C$13.00 in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, TELUS has a consensus rating of “Hold” and an average target price of C$18.68.

TELUS News Roundup

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.

About TELUS

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.