TU posts better than expected Q4 results. Top line grows year over year, driven by higher service revenues, real estate gains and copper monetization in TTech.
TELUS International's Q4 2024 revenues were flat year-over-year, but shares rose 10% on February 13, likely against fears of worse results. Cashflows remain substantially positive, and are slowly making the balance sheet look more appealing. The company continues to invest in generative AI solutions, which may explain higher operating costs on Q4.
Although the revenue and EPS for Telus (TU) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
TELUS Corporation (NYSE:TU ) Q4 2024 Earnings Conference Call February 13, 2025 12:30 PM ET Company Participants Robert Mitchell – Head-Investor Relations Darren Entwistle – President and Chief Executive Officer Doug French – Executive Vice President and Chief Financial Officer Navin Arora – Executive Vice President, President-Business Solutions Zainul Mawji – Executive Vice President and President-TELUS Consumer Solutions Conference Call Participants Jerome Dubreuil – Desjardins Maher Yaghi – Scotiabank Stephanie Price – CIBC Drew McReynolds – RBC Sebastiano Petti – JPMorgan Benjamin Swinburne – Morgan Stanley Operator Good day. Welcome to TELUS' 2024 Q4 Earnings Conference Call.
Telus (TU) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.18 per share a year ago.
Telus (TU) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
TU partners with Movius to transform business communications in Canada by introducing TELUS Unified MultiLine, an advanced, secure communication platform.
TELUS International (Cda) Inc. is poised for growth due to its exposure to the expanding AI industry and long-term contracts with major corporations. Recent efforts to boost sales capacity and value-added services are expected to drive revenue growth from 2025 to 2030. Despite competition and regulatory risks, TIXT's strong cash flow and financial health suggest significant undervaluation, making it a clear buy.
TELUS offers decent value despite industry pressures due to its stable cash flows, flexible capital allocation, and lack of balance sheet issues compared to peers. Q3'24 results were strong, with revenue up 1.8%, EBITDA up 15.8%, and EPS surpassing estimates, driven by net customer additions and margin expansion. TELUS is innovating with new products like TELUS Smart Energy and TELUS HomeView, enhancing cross-selling opportunities and showcasing growth beyond traditional telecom services.
Telus's 8% dividend is expected to be safe in 2025 and 2026 due to improving free cash flow and lower capital expenditures. Despite recent sector challenges, Telus's valuation is attractive, with a forward price-to-free cash flow ratio under 11x for 2025 and 9x for 2026. Potential benefits include a new business-friendly federal government and real estate sales, which could further improve financial stability.
Telus (TU) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
National Bank lowered the firm's price target on Telus to C$21 from C$22 and keeps a Sector Perform rating on the shares.