FY2025 EPS Estimates for Telus Digital Cut by Desjardins

Key Points

• Desjardins has reduced its FY2025 earnings per share estimate for Telus Digital from $0.32 to $0.17, reflecting a significant downgrade in expectations.
• Several brokerages have adjusted their ratings on Telus Digital, with National Bankshares lowering it from "outperform" to "sector perform" and raising the price target to $4.00.
• Despite the analyst downgrades, Telus Digital's stock saw a 1.5% increase, opening at $3.64 on Thursday, with a market cap of $1.00 billion.

Telus Digital (NYSE:TIXT - Free Report) - Equities researchers at Desjardins decreased their FY2025 earnings per share (EPS) estimates for shares of Telus Digital in a report released on Tuesday, August 5th. Desjardins analyst J. Dubreuil now expects that the company will earn $0.17 per share for the year, down from their prior estimate of $0.32. The consensus estimate for Telus Digital's current full-year earnings is $0.32 per share.

Telus Digital (NYSE:TIXT - Get Free Report) last released 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 firm had revenue of $711.33 million during the quarter, compared to the consensus estimate of $660.87 million. Telus Digital had a positive return on equity of 1.99% and a negative net margin of 14.09%.

A number of other analysts have also recently commented on TIXT. BMO Capital Markets reduced their price target on Telus Digital from $4.50 to $3.00 and set a "market perform" rating for the company in a research report on Monday, May 12th. Wall Street Zen lowered Telus Digital from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. National Bankshares lowered shares of Telus Digital from an "outperform" rating to a "sector perform" rating and raised their price objective for the company from $3.50 to $4.00 in a research note on Monday, July 21st. National Bank Financial cut shares of Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 target price on the stock. in a research note on Monday, July 21st. Finally, Morgan Stanley cut their price target on shares of Telus Digital from $3.49 to $3.40 and set an "equal weight" rating for the company in a research note on Monday, August 4th. Ten investment analysts have rated the stock with a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $3.69.

Telus Digital Price Performance

Shares of NYSE:TIXT traded up $0.04 on Thursday, hitting $3.83. The company's stock had a trading volume of 227,102 shares, compared to its average volume of 566,733. The company has a market capitalization of $1.05 billion, a PE ratio of -2.75 and a beta of 0.90. Telus Digital has a 1 year low of $2.13 and a 1 year high of $4.60. The company has a 50-day simple moving average of $3.63 and a 200 day simple moving average of $3.17. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.84 and a quick ratio of 0.84.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Aquatic Capital Management LLC bought a new stake in Telus Digital during the fourth quarter worth $37,000. Two Sigma Securities LLC bought a new position in shares of Telus Digital during the 4th quarter worth about $42,000. Bayesian Capital Management LP bought a new position in Telus Digital in the 4th quarter valued at about $45,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Telus Digital in the 1st quarter worth approximately $58,000. Finally, PDT Partners LLC bought a new stake in shares of Telus Digital in the 4th quarter worth approximately $61,000. 59.55% of the stock is currently owned by 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.