Telus Corp faced a significant setback in its stock performance following disappointing earnings results.
Yesterday, Telus Corp (T.TO) saw its stock price drop by 11.27%, closing at CA$13.38. This decline followed a disappointing earnings report that showed a sharp drop in adjusted earnings per share and a significant reduction in revenue forecasts.
Investor takeaway: Investors are trying to understand the implications of Telus's weakened financial outlook and how it might affect future returns, especially in a challenging market environment.
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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
-8.92%
Beta
0.73
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.
Telus Corp's stock dropped by 11.27% yesterday.
This decline reflects a broader trend of 33.6% loss over the past year, indicating ongoing challenges in the telecom sector.
Bull case
Despite the recent downturn, some analysts believe that Telus's investments in next-generation technologies and its strong competitive position could eventually lead to a recovery in stock price and profitability.
Bear case
However, the company's significant impairment charges and reduced guidance raise concerns about its ability to sustain dividends and growth, which could deter income-focused investors.
Earnings Report Highlights
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In its recent earnings report, Telus Corp announced adjusted earnings per share of C$0.16, a 27% drop from C$0.22 a year ago. This decline was attributed to weaker results in its digital segment and reduced mobile equipment revenues. The company also reported an 82% drop in other income, mainly due to the absence of prior-year lease revenues.
Revised Financial Guidance
Telus has cut its full-year consolidated service revenue growth forecast to a range of flat to a 2% decline, down from a previous estimate of 2-4% growth. This revision, along with a projected decline in adjusted EBITDA, has left investors concerned about the company's financial health and its ability to maintain its dividend.
Market Reaction and Future Outlook
The market reacted sharply to the news, with Telus's stock price reflecting investor anxiety over its future profitability. The company's significant impairment charges and the reset of its dividend policy have raised questions about its long-term viability in a competitive telecom landscape. Investors will need to weigh these risks against potential recovery strategies as Telus navigates this challenging period.
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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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