Telus Corp faced a significant setback in its stock performance following disappointing earnings and a drastic dividend cut.
In yesterday's trading session, Telus Corp (T.TO) saw its stock price drop by 11.27%, closing at CA$13.38. This decline was primarily driven by the company's recent Q2 earnings report, which revealed a 55% reduction in its dividend and a substantial non-cash impairment.
Investor takeaway: Investors should be cautious as Telus navigates a challenging landscape marked by reduced income appeal and increased scrutiny on its balance sheet.
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Telus Corp
T.TO
T.TO
Telus Corp
WealthAwesomeMarket cap
$20.89B
Div. yield
11.07%
Div. / share
$1.67
52W high
$21.20
52W low
$12.93
1W change
-7.08%
Beta
0.74
Analyst Price Targets
Based on analyst covering T
Wall Street analysts forecast T stock price to rise 37.2% over the next 12 months.
Consensus
BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$18.36
+37.2% Upside
Current Price
C$13.38
Last close
Analyst ratings and price targets are updated periodically. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on T's historical volatility
30-Day Vol
43.6%
Annualized
90-Day Vol
30.8%
Annualized
Trend (90d)
-50.0%
Annualized drift
90d Mean
C$11.19
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$12.61 | C$10.85 – C$14.65 |
| 60 trading days | C$11.88 | C$9.60 – C$14.69 |
| 90 trading days | C$11.19 | C$8.63 – C$14.52 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Bull case
Despite the recent setbacks, some analysts believe that Telus is undervalued. They estimate its fair value at CA$20.28 per share, suggesting there’s potential for recovery as the company invests in next-generation technologies.
Bear case
The drastic dividend cut and lowered revenue guidance raise concerns about Telus's ability to maintain investor confidence and deliver consistent returns, especially in a competitive telecom market.
Earnings Report Highlights
Telus reported a 27% decline in adjusted earnings per share, missing analyst expectations. The company also announced a C$2.1 billion non-cash impairment, which has raised concerns about its operational efficiency and long-term profitability.
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Dividend Cut Impact
The announcement of a 55% reduction in its quarterly dividend has disappointed income-focused investors, leading to a sharp sell-off in the stock. This move signals a significant shift in Telus's financial strategy as it aims to stabilize its balance sheet amidst ongoing challenges.
Market Reaction and Future Outlook
The market reacted negatively to Telus's guidance revisions, with many investors questioning the sustainability of its business model. As the company faces intense competition and rising operational costs, the path forward remains uncertain, making it essential for investors to closely monitor future developments.
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Wealth Awesome
Timely coverage of Canadian stocks, earnings, dividends, and market movers for DIY investors. Stories are checked against exchange data and public filings.
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