Telus Digital (NYSE:TIXT) Posts Quarterly 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 quarterly 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. The business 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 1.92% and a negative net margin of 14.09%. Telus Digital updated its FY 2025 guidance to 0.320-0.320 EPS.

Telus Digital Price Performance

TIXT traded up $0.04 on Monday, reaching $3.72. The stock had a trading volume of 397,619 shares, compared to its average volume of 705,787. Telus Digital has a fifty-two week low of $2.13 and a fifty-two week high of $4.60. The firm has a 50-day moving average of $3.54 and a 200-day moving average of $3.17. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.70. The company has a market capitalization of $1.02 billion, a price-to-earnings ratio of -2.67 and a beta of 0.90.

Hedge Funds Weigh In On Telus Digital

A hedge fund recently bought a new stake in Telus Digital stock. Dynamic Technology Lab Private Ltd purchased a new stake in Telus Digital (NYSE:TIXT - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 21,447 shares of the company's stock, valued at approximately $58,000. 59.55% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. CIBC cut their target price on Telus Digital from $4.50 to $3.40 and set a "neutral" rating for the company in a research report on Friday, June 13th. National Bankshares downgraded Telus Digital from an "outperform" rating to a "sector perform" rating and upped their target price for the company from $3.50 to $4.00 in a research report on Monday, July 21st. Morgan Stanley cut their target price on Telus Digital from $3.49 to $3.40 and set an "equal weight" rating for the company in a research report on Monday. Wall Street Zen downgraded Telus Digital from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. Finally, Barclays cut their target price on Telus Digital from $5.00 to $3.00 and set an "equal weight" rating for the company in a research report on Friday, April 25th. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $3.84.

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.