TIXT Earnings Prediction
The chart below shows how TIXT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TIXT sees a +9.74% change in stock price 10 days leading up to the earnings, and a -6.29% change 10 days following the report. On the earnings day itself, the stock moves by -4.51%. This data can give you a slight idea of what to expect for the next quarter's release.
TIXT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
658.00M
-0.75%
0.92%
Gross Margin
68.54%
-2.70%
-2.00%
Operating Margin
2.13%
-76.07%
-30.62%
Net Margin
-4.86%
-457.35%
956.52%
EPS
-0.12
-500.00%
1100.00%
No Data Available
TIXT Earnings Analysis
TELUS International (Cda) Inc. Subordinate Voting Shares Corporation (TIXT.N) Earnings Conference Call
Positive
TELUS Digital Revenue Surge: 1. Strong Revenue Growth: TELUS Digital reported a revenue of $658 million in Q3 2024, showing incremental improvements from the prior quarter, driven by a 21% year-over-year revenue growth from its largest client, TELUS.
Client Service Expansion: 2. Client Expansion: The company added new services for dozens of existing customers and grew existing services with over 80 clients, including major names like Google and a leading social media network.
Service Quality Recognition: 3. Recognition for Service Quality: For the sixth consecutive year, TELUS Digital was recognized as a leader in Everest Group's peak matrix for CXM services, highlighting its innovation in GenAI offerings.
Cost Efficiency Goals: 4. Cost Efficiency Initiatives: TELUS Digital is on track to achieve $30 million in cost efficiencies planned for the year, which will help stabilize margins amid competitive pricing pressures.
Free Cash Flow Performance: 5. Free Cash Flow Generation: The company generated free cash flow of $98 million in Q3 2024, with an expected free cash flow yield of approximately 14% for the year, indicating strong liquidity and financial health.
Negative
Free Cash Flow Decline: 1. Declining Free Cash Flow: TELUS Digital reported a free cash flow of $98 million in Q3 2024, a year-over-year decline attributed to lower operating profits and timing for income tax payments.
Stagnant EBITDA Margin: 2. Stagnant Adjusted EBITDA Margin: The adjusted EBITDA margin for Q3 2024 was 14.4%, showing no improvement compared to the previous quarter, indicating challenges in profitability amidst ongoing price competition.
Decline in Key Client Revenue: 3. Lower Year-over-Year Revenue from Key Clients: Revenue from a leading social media client decreased year-over-year, highlighting difficulties in maintaining growth with significant accounts despite a 5% sequential increase.
Negative EPS Outlook: 4. Negative EPS Guidance: The company expects adjusted diluted EPS to be closer to the lower end of the range at $0.39 to $0.44, suggesting potential losses in Q4 2024 due to non-cash tax charges related to deferred tax assets.
Cost Efficiency Initiatives: 5. Increased Cost Pressures: The company is facing heightened price competition, which has led to a focus on cost efficiency efforts, with plans to achieve $30 million in cost efficiencies for the year, reflecting ongoing financial strain.
TIXT FAQs
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TIXT Earning Call Sentiment
TELUS International (Cda) Inc. (TIXT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TIXT.N
1.19%Positive
The earnings call presented strong financial performance with 21% revenue growth, a robust sales funnel, and strategic focus on AI and digital sectors. Positive developments include a strong partnership with TELUS and Google, successful cost efficiency initiatives, and optimistic guidance for future growth. Despite a decline in free cash flow and some uncertainty in EPS guidance, overall sentiment is positive due to solid growth in key areas and market expansion. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
