FY2025 EPS Estimates for Telus Digital Lowered by Analyst

Key Points

• William Blair has reduced its FY2025 earnings per share estimate for Telus Digital from $0.33 to $0.32, aligning with the current consensus estimate.
• The company recently reported quarterly earnings of $0.06 per share, surpassing expectations, with revenue of $711.33 million, significantly above the anticipated $660.87 million.
• Multiple brokerages have lowered their price targets for Telus Digital, with Morgan Stanley reducing its target from $3.49 to $3.40 and Barclays from $5.00 to $3.00, indicating a trend of cautious outlook among analysts.

Telus Digital (NYSE:TIXT - Free Report) - Investment analysts at William Blair cut their FY2025 earnings estimates for shares of Telus Digital in a research report issued on Monday, August 4th. William Blair analyst M. Nolan now anticipates that the company will post earnings of $0.32 per share for the year, down from their prior forecast of $0.33. The consensus estimate for Telus Digital's current full-year earnings is $0.32 per share. William Blair also issued estimates for Telus Digital's Q4 2026 earnings at $0.11 EPS and FY2027 earnings at $0.43 EPS.

Telus Digital (NYSE:TIXT - Get Free Report) last issued its quarterly earnings data on Friday, August 1st. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.01. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%. The firm had revenue of $711.33 million for the quarter, compared to analyst estimates of $660.87 million.

A number of other equities research analysts have also issued reports on TIXT. Morgan Stanley cut their target price on shares of Telus Digital from $3.49 to $3.40 and set an "equal weight" rating on the stock in a research note on Monday, August 4th. National Bankshares lowered shares of Telus Digital from an "outperform" rating to a "sector perform" rating and upped their target price for the company from $3.50 to $4.00 in a research note on Monday, July 21st. CIBC cut their target price on shares of Telus Digital from $4.50 to $3.40 and set a "neutral" rating on the stock in a research note on Friday, June 13th. BMO Capital Markets cut their target price on shares of Telus Digital from $4.50 to $3.00 and set a "market perform" rating on the stock in a research note on Monday, May 12th. Finally, Barclays lowered their price objective on shares of Telus Digital from $5.00 to $3.00 and set an "equal weight" rating for the company in a research report on Friday, April 25th. Ten equities research analysts have rated the stock with a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $3.69.

Telus Digital Stock Up 2.6%

TIXT stock traded up $0.10 during trading on Wednesday, reaching $3.80. The stock had a trading volume of 765,075 shares, compared to its average volume of 788,623. The company has a market capitalization of $1.05 billion, a P/E ratio of -2.73 and a beta of 0.90. The firm has a fifty day moving average price of $3.63 and a 200 day moving average price of $3.18. The company has a current ratio of 0.84, a quick ratio of 0.86 and a debt-to-equity ratio of 0.85. Telus Digital has a 1-year low of $2.13 and a 1-year high of $4.60.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Alberta Investment Management Corp bought a new position in Telus Digital in the 2nd quarter worth about $708,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Telus Digital in the 2nd quarter worth about $169,000. Scheer Rowlett & Associates Investment Management Ltd. grew its position in Telus Digital by 2.5% in the 2nd quarter. Scheer Rowlett & Associates Investment Management Ltd. now owns 3,667,490 shares of the company's stock worth $13,394,000 after purchasing an additional 87,750 shares during the last quarter. QV Investors Inc. grew its position in Telus Digital by 25.8% in the 2nd quarter. QV Investors Inc. now owns 7,614,325 shares of the company's stock worth $27,623,000 after purchasing an additional 1,561,690 shares during the last quarter. Finally, Cardinal Point Capital Management ULC bought a new position in Telus Digital in the 2nd quarter worth about $386,000. Institutional investors own 59.55% of the company's stock.

Telus Digital Company Profile

TELUS Digital Inc design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection.