Telus Digital (NYSE:TIXT) Issues Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Telus Digital reported an earnings per share (EPS) of $0.06, surpassing analysts' expectations of $0.05, and had a revenue of $711.33 million compared to estimates of $660.87 million.
• The company's stock decreased by 2.4% and has an average target price of $3.88, with a consensus rating of "Hold" from analysts.
• Goldman Sachs raised its stake in Telus Digital by 73.5% during the first quarter, showing increased institutional interest in the stock.

Telus Digital (NYSE:TIXT - Get Free Report) released its earnings results on Friday. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.01, Zacks reports. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%. The business had revenue of $711.33 million for the quarter, compared to analyst estimates of $660.87 million. Telus Digital updated its FY 2025 guidance to 0.320-0.320 EPS.

Telus Digital Stock Performance

Shares of NYSE TIXT traded up $0.06 during midday trading on Wednesday, reaching $3.64. The company's stock had a trading volume of 1,187,586 shares, compared to its average volume of 569,408. The stock has a market capitalization of $1.00 billion, a P/E ratio of -2.62 and a beta of 0.90. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.84 and a quick ratio of 0.86. The firm has a 50 day moving average price of $3.58 and a 200-day moving average price of $3.18. Telus Digital has a 12-month low of $2.13 and a 12-month high of $4.60.

Institutional Trading of Telus Digital

An institutional investor recently raised its position in Telus Digital stock. Goldman Sachs Group Inc. grew its holdings in shares of Telus Digital (NYSE:TIXT - Free Report) by 73.5% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 541,635 shares of the company's stock after purchasing an additional 229,369 shares during the quarter. Goldman Sachs Group Inc. owned about 0.20% of Telus Digital worth $1,457,000 at the end of the most recent reporting period. 59.55% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have weighed in on TIXT. Wall Street Zen downgraded shares of Telus Digital from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. Barclays lowered their target price on 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. National Bank Financial downgraded shares of Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price target for the company. in a research report on Monday, July 21st. National Bankshares lowered shares of Telus Digital from an "outperform" rating to a "sector perform" rating and boosted their price target for the company from $3.50 to $4.00 in a research note on Monday, July 21st. Finally, Scotiabank raised their price objective on shares of Telus Digital from $3.00 to $3.40 and gave the company a "sector perform" rating in a research note on Tuesday, June 17th. Twelve 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 stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $3.70.

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.