TU Earnings Prediction
The chart below shows how TU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TU sees a -0.44% change in stock price 10 days leading up to the earnings, and a +0.32% change 10 days following the report. On the earnings day itself, the stock moves by +1.05%. This data can give you a slight idea of what to expect for the next quarter's release.
TU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.33B
3.39%
5.73%
Gross Margin
41.49%
2.85%
-6.28%
Operating Margin
13.54%
-11.62%
-21.69%
Net Margin
6.00%
-0.17%
17.65%
EPS
0.24
20.00%
26.32%
No Data Available
TU Earnings Analysis
Telus Corp Corporation (TU.N) Earnings Conference Call
Positive
Customer Growth Milestone: TELUS achieved over 1.2 million telecom net new customer additions in 2024, marking the third consecutive year of surpassing 1 million customer additions.
Postpaid Churn Rate Stability: Postpaid mobile phone churn was 0.99% for the full year, maintaining a record of less than 1% for 11 consecutive years.
EBITDA Growth Achievement: TELUS reported a 5.5% TTech EBITDA growth for 2024, meeting the target range set at the beginning of the year, with a 7% growth in the fourth quarter.
Customer Telecom Net Additions: The company achieved industry-best total customer telecom net additions of 328,000 for the fourth quarter, with mobile net additions of 264,000.
Wireline Customer Growth: TELUS delivered industry-leading total wireline customer growth, including 37,000 internet net additions in the fourth quarter, contributing to a 3.5% growth in fixed data services revenue.
Revenue and EBITDA Growth: TELUS Health experienced a 10% revenue growth in the fourth quarter, alongside a 20% increase in its EBITDA contribution.
Acquisition Synergy Achievement: Since acquiring LifeWorks, TELUS has achieved $355 million in combined annualized synergies, remaining on track to meet the goal of $427 million by year-end.
Record Sales Performance: The company reported a 16% revenue growth in TELUS Agriculture & Consumer Goods, with eight consecutive quarters of record sales performance.
2025 Revenue and EBITDA Growth: TELUS anticipates a robust outlook for 2025, targeting TTech operating revenue growth of up to 4% and adjusted EBITDA growth of up to 5%.
Free Cash Flow Forecast: Free cash flow for 2025 is forecasted to be approximately $2.15 billion, supported by moderated capital expenditures of approximately $2.5 billion.
Negative
Customer Growth vs. Share Price: Despite achieving strong customer growth, TELUS expressed disappointment in its share price performance over the past year, indicating a disconnect between operational success and market valuation.
Mobile Revenue Stability: Mobile network revenue remained flat, with lower mobile phone ARPU declining by 3.6%, reflecting ongoing competitive pressures in the market.
Free Cash Flow Analysis: Free cash flow for 2024 was approximately $2 billion, slightly below the target of $2.1 billion, primarily due to higher-than-expected cash impacts from contract assets and device financing.
Interest Payment Impact: The company anticipates slightly higher interest payments in 2025, which could impact overall profitability.
Capital Expenditure Decline: The planned slowdown in fiber and wireless asset builds led to a decline in capital expenditures by $294 million or 11%, indicating a potential reduction in growth investment.
Leverage Ratio Analysis: The leverage ratio at the end of 2024 stood at 3.9x, which is above the target of approximately 3x by 2027, suggesting a need for further deleveraging efforts.
TU FAQs
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TU Earning Call Sentiment
TELUS Corporation (NYSE:TU) Q4 2024 Earnings Call Transcript
TU.N
1.17%Positive
The earnings call presents a mixed outlook. Strong financial performance, including industry-leading customer growth and positive EBITDA growth, is offset by concerns over revenue outlook and free cash flow risks. The Q&A section reveals some uncertainties, particularly around asset divestitures and dividend plans. Positive factors include a high dividend yield and strong sector growth, but these are balanced by revenue guidance revisions and debt management challenges. Overall, the sentiment is neutral, with no significant catalysts for strong positive or negative movement.
