Canada's Telus Q3 revenue flat, adjusted EPS misses estimates

Reuters11-07
Canada's Telus Q3 revenue flat, adjusted EPS misses estimates

Overview

  • Telus Q3 revenue flat yr/yr at C$5.1 bln, with service revenue growth offset by declines in mobile equipment revenue

  • Adjusted EPS for Q3 missed analyst expectations

  • Net income for Q3 rises 68% yr/yr, driven by gain on debt purchase

  • Free cash flow grows 8%, supporting dividend increase

Outlook

  • Telus expects 2025 TTech revenue growth at lower end of original range

  • Company maintains 2025 targets for TTech Adjusted EBITDA and capital expenditures

  • Telus foresees sustained EBITDA expansion and robust free cash flow growth

Result Drivers

  • CUSTOMER GROWTH - Achieved 288,000 net customer additions, driven by demand for core connectivity services and TELUS PureFibre expansion

  • TELUS HEALTH GROWTH - Operating revenue and adjusted EBITDA grew by 18% and 24%, driven by global business acquisitions and growth in payor and provider solutions

  • FLAT REVENUE - Overall revenue remained flat due to declines in mobile equipment revenue and other income, despite a 2% increase in service revenue

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

C$0.24

C$0.27 (11 Analysts)

Q3 Adjusted Net Income

C$370 mln

Q3 Net Income

C$431 mln

Q3 Adjusted EBITDA

C$1.86 bln

Q3 Basic EPS

C$0.32

Q3 EBITDA

C$1.75 bln

Q3 Free Cash Flow

C$611 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the integrated telecommunications services peer group is "buy."

  • Wall Street's median 12-month price target for Telus Corp is C$23.00, about 10.2% above its November 6 closing price of C$20.66

Press Release: ID:nPn4NSFbpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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