Results: TELUS Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for TELUS Corporation (TSE:T) shareholders, because the company has just released its latest full-year results, and the shares gained 5.9% to CA$21.80. The result was positive overall - although revenues of CA$20b were in line with what the analysts predicted, TELUS surprised by delivering a statutory profit of CA$0.67 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for TELUS

Following the latest results, TELUS' twelve analysts are now forecasting revenues of CA$20.9b in 2025. This would be a reasonable 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 26% to CA$0.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$20.7b and earnings per share (EPS) of CA$0.84 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CA$23.43, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic TELUS analyst has a price target of CA$29.00 per share, while the most pessimistic values it at CA$20.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await TELUS shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that TELUS' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.5% annually. Even after the forecast slowdown in growth, it seems obvious that TELUS is also expected to grow faster than the wider industry.

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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple TELUS analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for TELUS (2 are potentially serious!) that 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.