According to Zacks, “TELUS operates in a highly competitive environment. Its operating margins remain strained as cable TV operators move from phone services based on ‘circuit-switched’ technology to less costly Voice-over-Internet Protocol. High capital investments for network upgrades further reduce the profitability of the company. Efforts to offset substantial capital expenditure for upgrading the network infrastructure by raising fees have significantly reduced demand for TELUS’ services as customers tend to switch to lower-priced carriers. However, TELUS continues benefiting from increased penetration of smartphones, higher average revenue per unit, accelerating wireless data services and growing wireline fiber optic networks. The stock has outperformed the industry in the past year on average.”
Several other research firms have also recently weighed in on TU. Royal Bank of Canada reaffirmed a buy rating on shares of TELUS in a research note on Tuesday, April 9th. TheStreet raised shares of TELUS from a c+ rating to a b- rating in a research note on Thursday, April 4th. Canaccord Genuity reissued a buy rating on shares of TELUS in a research note on Friday, February 15th. Finally, Echelon Wealth Partners reissued a buy rating on shares of TELUS in a research note on Friday, February 15th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have issued a buy rating to the stock. TELUS has an average rating of Buy and an average price target of $47.67.
TELUS (NYSE:TU) (TSE:T) last posted its earnings results on Thursday, February 14th. The Wireless communications provider reported $0.53 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.53. The company had revenue of $3.76 billion during the quarter, compared to analysts’ expectations of $3.69 billion. TELUS had a net margin of 11.14% and a return on equity of 17.32%. TELUS’s quarterly revenue was up 6.3% on a year-over-year basis. During the same period last year, the company posted $0.55 earnings per share. As a group, research analysts predict that TELUS will post 2.2 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 1st. Shareholders of record on Monday, March 11th were paid a $0.4098 dividend. The ex-dividend date of this dividend was Friday, March 8th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.39%. TELUS’s payout ratio is currently 77.10%.
Large investors have recently modified their holdings of the business. Van ECK Associates Corp purchased a new position in shares of TELUS in the 4th quarter worth $25,000. Proficio Capital Partners LLC grew its stake in shares of TELUS by 199.7% in the 4th quarter. Proficio Capital Partners LLC now owns 959 shares of the Wireless communications provider’s stock worth $32,000 after buying an additional 639 shares in the last quarter. Financial Gravity Companies Inc. purchased a new position in shares of TELUS in the 4th quarter worth $38,000. Oppenheimer Asset Management Inc. purchased a new position in shares of TELUS in the 4th quarter worth $51,000. Finally, Enlightenment Research LLC purchased a new position in shares of TELUS in the 4th quarter worth $60,000. 50.56% of the stock is owned by institutional investors and hedge funds.
TELUS Company Profile
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company's telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and cloud-based services; healthcare solutions; customer care and business services; and home and business security solutions.
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