TELUS Digital (TIXT) Q2 Earnings and Revenues Beat Estimates (Revised)

Company Performance - TELUS Digital reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.16 per share a year ago, representing an earnings surprise of +20.00% [1] - The company posted revenues of $699 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.93%, compared to $652 million in the same quarter last year [2] - Over the last four quarters, TELUS Digital has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Outlook - TELUS Digital shares have declined approximately 3.8% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $675.26 million, and for the current fiscal year, it is $0.32 on revenues of $2.71 billion [7] - The estimate revisions trend for TELUS Digital was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which TELUS Digital belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]