Desjardins Has Pessimistic View of TELUS FY2025 Earnings

Key Points

• Desjardins has revised its forecast for TELUS's FY2025 earnings per share (EPS) down to $0.99, a decrease from the previous estimate of $1.01.
• Multiple analysts have varied target prices for TELUS, with BMO Capital Markets raising their target to C$24.00 and Royal Bank of Canada reducing it to C$24.00, indicating a consensus rating of "Hold".
• TELUS recently increased its quarterly dividend to $0.4163 per share, representing an annualized yield of 7.6%, despite a high payout ratio of 253.11%.

TELUS Co. (TSE:T - Free Report) NYSE: TU - Analysts at Desjardins lowered their FY2025 earnings estimates for shares of TELUS in a research report issued to clients and investors on Tuesday, August 5th. Desjardins analyst J. Dubreuil now anticipates that the company will earn $0.99 per share for the year, down from their previous forecast of $1.01. The consensus estimate for TELUS's current full-year earnings is $1.23 per share.

T has been the topic of a number of other reports. Scotiabank set a C$24.50 target price on shares of TELUS and gave the stock an "outperform" rating in a research note on Friday, June 13th. BMO Capital Markets raised their target price on shares of TELUS from C$23.00 to C$24.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 2nd. National Bankshares raised their price target on shares of TELUS from C$22.00 to C$23.00 and gave the stock a "sector perform" rating in a report on Friday, June 6th. Finally, Canaccord Genuity Group raised their price target on shares of TELUS from C$20.25 to C$21.50 in a report on Monday, May 12th. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of C$23.18.

TELUS Price Performance

TELUS stock traded up C$0.01 during midday trading on Thursday, reaching C$22.10. The company had a trading volume of 2,723,424 shares, compared to its average volume of 3,987,679. The company has a market capitalization of C$33.27 billion, a P/E ratio of 35.86, a P/E/G ratio of 1.65 and a beta of 0.72. TELUS has a 12-month low of C$19.10 and a 12-month high of C$23.43. The firm's fifty day simple moving average is C$22.19 and its 200-day simple moving average is C$21.57. The company has a debt-to-equity ratio of 183.41, a current ratio of 0.69 and a quick ratio of 0.52.

TELUS Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Wednesday, September 10th will be issued a $0.4163 dividend. This represents a $1.67 dividend on an annualized basis and a dividend yield of 7.5%. This is a boost from TELUS's previous quarterly dividend of $0.40. TELUS's dividend payout ratio is presently 253.11%.

About TELUS

Telus is one of the Big Three wireless service providers in Canada, with its 9 million mobile phone subscribers nationwide constituting about 30% of the total market. It is the incumbent local exchange carrier in the western Canadian provinces of British Columbia and Alberta, where it provides internet, television, and landline phone services.