FY2025 EPS Estimates for Telus Digital Cut by William Blair

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 reduced their FY2025 earnings estimates for shares of Telus Digital in a note issued to investors on Monday, August 4th. William Blair analyst M. Nolan now forecasts that the company will earn $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, beating the consensus estimate of $0.05 by $0.01. The company had revenue of $711.33 million during the quarter, compared to analysts' expectations of $660.87 million. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%.

Several other brokerages also recently commented on TIXT. Morgan Stanley cut their price objective on shares of Telus Digital from $3.49 to $3.40 and set an "equal weight" rating on the stock in a research report on Monday. Barclays dropped their price target on shares of Telus Digital from $5.00 to $3.00 and set an "equal weight" rating on the stock in a report on Friday, April 25th. CIBC dropped their price target on shares of Telus Digital from $4.50 to $3.40 and set a "neutral" rating on the stock in a report on Friday, June 13th. Wall Street Zen lowered shares of Telus Digital from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. Finally, National Bankshares cut shares of Telus Digital from an "outperform" rating to a "sector perform" rating and raised their target price for the stock from $3.50 to $4.00 in a research note on Monday, July 21st. Twelve investment analysts have rated the stock with a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $3.70.

Telus Digital Stock Down 4.5%

Shares of NYSE TIXT opened at $3.57 on Wednesday. The company has a current ratio of 0.84, a quick ratio of 0.86 and a debt-to-equity ratio of 0.85. The firm has a fifty day simple moving average of $3.58 and a two-hundred day simple moving average of $3.18. The firm has a market capitalization of $984.07 million, a PE ratio of -2.57 and a beta of 0.90. Telus Digital has a 12 month low of $2.13 and a 12 month high of $4.60.

Institutional Trading of Telus Digital

A number of large investors have recently made changes to their positions in TIXT. Franklin Resources Inc. raised its holdings in shares of Telus Digital by 3.3% in the fourth quarter. Franklin Resources Inc. now owns 113,690 shares of the company's stock valued at $446,000 after acquiring an additional 3,667 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Telus Digital by 19.2% during the 4th quarter. Geode Capital Management LLC now owns 76,811 shares of the company's stock valued at $301,000 after buying an additional 12,366 shares in the last quarter. Wells Fargo & Company MN lifted its position in shares of Telus Digital by 1.1% during the 4th quarter. Wells Fargo & Company MN now owns 316,626 shares of the company's stock valued at $1,244,000 after buying an additional 3,397 shares in the last quarter. Bank of Montreal Can raised its stake in Telus Digital by 13.0% in the 4th quarter. Bank of Montreal Can now owns 211,122 shares of the company's stock valued at $829,000 after purchasing an additional 24,368 shares during the last quarter. Finally, Bank of Nova Scotia raised its stake in Telus Digital by 56.2% in the 4th quarter. Bank of Nova Scotia now owns 247,731 shares of the company's stock valued at $974,000 after purchasing an additional 89,119 shares during the last quarter. 59.55% of the stock is owned by hedge funds and other institutional investors.

About Telus Digital

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.

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