TELUS (TSE:T) Posts Quarterly Earnings Results

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

TELUS Trading Down 11.3%

T stock traded down C$1.70 during midday trading on Friday, hitting C$13.38. The company had a trading volume of 50,341,643 shares, compared to its average volume of 7,780,970. The stock has a market cap of C$20.89 billion, a price-to-earnings 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 current ratio of 0.67, a quick ratio of 0.52 and a debt-to-equity ratio of 199.56. The stock’s 50 day moving average price is C$15.80 and its 200 day moving average price is C$17.24.

More TELUS News

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: Management plans to reduce the dividend by approximately 55%, which is expected to save about C$2.7 billion in cash. The savings should give TELUS more flexibility to repay debt and strengthen its balance sheet under new CEO Victor Dodig. TELUS cuts dividend, plans asset sales as new CEO makes his mark
• Positive Sentiment: TELUS also intends to sell assets, potentially including parts of its health division. Proceeds could support debt reduction and improve financial flexibility, although the timing and valuation of any sales remain uncertain. 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 leaves the potential revenue impact unresolved and provides no immediate regulatory clarity. CRTC Pauses Deadlines for Bell, Rogers and Telus to Answer for New Switching Fees
• Negative Sentiment: The dividend cut is a significant setback for income-focused shareholders and signals that debt levels have become a priority. TELUS has elevated leverage, including a debt-to-equity ratio near 200%, while weak profitability increases concern about its ability to sustain previous payouts. Telus slashes dividend to deploy more cash for debt repayment
• Negative Sentiment: Analysts and investors reacted negatively to the earnings shortfall, while ATB Capital Markets issued a pessimistic TELUS price forecast. The combination of weaker results, reduced shareholder payouts and potential asset disposals is weighing on the stock’s outlook. Telus Stock Slides After Disappointing Q2 Results

Analyst Upgrades and Downgrades

A number of research analysts recently commented on T shares. Canaccord Genuity Group reduced their target price on TELUS from C$16.75 to C$15.50 and set a “hold” rating on the stock in a research note on Friday, July 10th. Morgan Stanley lowered TELUS from an “equal weight” rating to an “underweight” rating and dropped their price target for the stock from C$20.00 to C$13.00 in a research note on Tuesday, July 21st. TD upgraded TELUS from a “hold” rating to a “buy” rating and upped their price objective for the stock from C$19.00 to C$20.00 in a report on Tuesday, April 28th. Raymond James Financial set a C$18.50 price objective on TELUS and gave the company a “market perform” rating in a research report on Thursday, July 16th. Finally, Royal Bank Of Canada dropped their target price on 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. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently 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.