Analyst Estimates: Here's What Brokers Think Of Telstra Group Limited (ASX:TLS) After Its Interim Report

It's been a good week for Telstra Group Limited (ASX:TLS) shareholders, because the company has just released its latest half-yearly results, and the shares gained 7.0% to AU$4.14. Results were roughly in line with estimates, with revenues of AU$12b and statutory earnings per share of AU$0.089. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Telstra Group

Following the latest results, Telstra Group's eleven analysts are now forecasting revenues of AU$23.8b in 2025. This would be a credible 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 29% to AU$0.19. Before this earnings report, the analysts had been forecasting revenues of AU$23.9b and earnings per share (EPS) of AU$0.19 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of AU$4.31, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Telstra Group analyst has a price target of AU$4.65 per share, while the most pessimistic values it at AU$3.20. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Telstra Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.0% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.8% per year. So it looks like Telstra Group is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at AU$4.31, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Telstra Group analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Telstra Group (1 is a bit unpleasant) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.