FY2025 EPS Estimates for Telus Digital Decreased by Analyst

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) - Stock analysts at Desjardins lowered their FY2025 earnings estimates for Telus Digital in a report issued on Tuesday, August 5th. Desjardins analyst J. Dubreuil now anticipates that the company will post earnings per share of $0.17 for the year, down from their prior forecast 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 results on Friday, August 1st. The company reported $0.06 earnings per share for the quarter, beating 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 company had revenue of $711.33 million for the quarter, compared to analyst estimates of $660.87 million.

A number of other research firms have also weighed in on TIXT. National Bankshares lowered shares of Telus Digital from an "outperform" rating to a "sector perform" rating and raised their price target for the company from $3.50 to $4.00 in a research report on Monday, July 21st. Barclays lowered their price objective on shares of Telus Digital from $5.00 to $3.00 and set an "equal weight" rating on the stock in a research report on Friday, April 25th. BMO Capital Markets lowered their price objective on shares of Telus Digital from $4.50 to $3.00 and set a "market perform" rating on the stock in a research report on Monday, May 12th. Scotiabank lifted their price objective on shares of Telus Digital from $3.00 to $3.40 and gave the stock a "sector perform" rating in a research report on Tuesday, June 17th. Finally, Morgan Stanley lowered 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. Ten research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, Telus Digital currently has an average rating of "Hold" and an average target price of $3.69.

Telus Digital Stock Up 2.6%

Shares of TIXT traded up $0.10 during trading hours on Thursday, reaching $3.80. 765,075 shares of the stock traded hands, compared to its average volume of 788,623. 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 stock has a fifty day simple moving average of $3.63 and a 200 day simple moving average of $3.18. Telus Digital has a 52 week low of $2.13 and a 52 week high of $4.60. The company has a market cap of $1.05 billion, a price-to-earnings ratio of -2.73 and a beta of 0.90.

Hedge Funds Weigh In On Telus Digital

Several hedge funds have recently bought and sold shares of TIXT. Public Employees Retirement System of Ohio raised its position in shares of Telus Digital by 18.8% during the 4th quarter. Public Employees Retirement System of Ohio now owns 34,862 shares of the company's stock valued at $137,000 after buying an additional 5,509 shares in the last quarter. Bank of America Corp DE boosted its position in Telus Digital by 14.3% during the 4th quarter. Bank of America Corp DE now owns 419,723 shares of the company's stock valued at $1,645,000 after buying an additional 52,561 shares during the period. BNP Paribas Financial Markets purchased a new stake in Telus Digital during the 4th quarter valued at $101,000. Two Sigma Investments LP boosted its position in Telus Digital by 578.8% during the 4th quarter. Two Sigma Investments LP now owns 497,821 shares of the company's stock valued at $1,951,000 after buying an additional 424,484 shares during the period. Finally, Deutsche Bank AG purchased a new stake in Telus Digital during the 4th quarter valued at $246,000. Hedge funds and other 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.