Yahoo Finance Telstra Group Limited (ASX:TLS) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates
Investors in Telstra Group Limited (ASX:TLS) had a good week, as its shares rose 3.4% to close at AU$4.21 following the release of its half-yearly results. The result was positive overall - although revenues of AU$12b were in line with what the analysts predicted, Telstra Group surprised by delivering a statutory profit of AU$0.075 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Telstra Group
Taking into account the latest results, the current consensus from Telstra Group's twelve analysts is for revenues of AU$23.2b in 2023, which would reflect an okay 5.0% increase on its sales over the past 12 months. Statutory earnings per share are predicted to accumulate 3.8% to AU$0.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$23.1b and earnings per share (EPS) of AU$0.16 in 2023. 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$4.60, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Telstra Group, with the most bullish analyst valuing it at AU$5.40 and the most bearish at AU$3.57 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Telstra Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 4.9% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.2% annually. Not only are Telstra Group's revenues expected to improve, it seems that the analysts are also expecting it 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at AU$4.60, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Telstra Group going out to 2025, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Telstra Group that we have uncovered.
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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.
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