The Zacks Diversified Communication Services industry appears to be combating high capital expenditures for 5G infrastructure upgrades, unpredictable raw material prices, supply-chain disruptions amid the prolonged Russia-Ukraine war and Middle East tensions, intense market volatility and high customer inventory levels. However, the industry is likely to benefit in the long run from an accelerated 5G rollout and increased fiber densification.  Amid such uncertain market conditions, Telenor ASA (TELNY) , Tel ...

Core Insights - TELUS Corporation has reached a definitive agreement to acquire all outstanding shares of TELUS International, valuing each share at $4.50, totaling approximately $539 million [1][9] - The acquisition is expected to enhance TELUS's digital customer experience, accelerate AI capabilities, and drive SaaS transformation across its core businesses [3][9] - The deal has been unanimously approved by TELUS Digital's board and is supported by EQT, the largest minority shareholder [4][5] Financial Details - Shareholders will have three payment options: $4.50 in cash, 0.273 of a TELUS common share, or a combination of $2.25 in cash and 0.136 of a TELUS share, with no more than 25% of the total consideration paid in shares [2] - The agreed price represents a 52% premium over TELUS Digital's closing share price of $2.96 on June 11, 2025 [2] - The transaction values TELUS Digital at $2.9 billion and is subject to shareholder, court, and regulatory approvals [5] Strategic Implications - The acquisition aligns with TELUS's broader strategy to strengthen its position in digital transformation, AI, and global innovation across multiple industries [3][5] - TELUS Digital's operating revenues increased by 8% in Q2 2025, aided by a stronger U.S. dollar and euro, while adjusted EBITDA decreased by 25.8% year-over-year [6] - The integration aims to enhance TELUS's capabilities in fintech, gaming, media, and healthcare, ensuring substantial value creation for shareholders [3][5] Approval Process - A special shareholder meeting is scheduled for October 27, 2025, with TELUS Digital shareholders of record on September 12 eligible to vote [5] - If approved, the transaction is expected to close in Q4 2025, after which TELUS Digital's shares will be delisted [5][9]

Core Insights - BCE Inc. reported second-quarter 2025 adjusted EPS of C$0.63, down from C$0.78 in the prior-year quarter, missing the Zacks Consensus Estimate of C$0.52 per share [1][8] - Total operating revenues increased by 1.3% year over year to C$6,085 million, surpassing the consensus estimate of C$4,324.9 million [2][8] - Product revenues surged by 17.4% to C$818 million, while total service revenues dipped by 1.5% to C$5,267 million [2][8] Financial Performance - Bell CTS segment's operating revenues rose by 1% year over year to C$5,334 million, driven by higher product revenues, although service revenues fell by 1.5% to C$4,516 million [3][8] - Mobile phone blended ARPU decreased by 0.7% to C$57.61, attributed to competitive pricing pressures and lower data overage revenues [9] - Adjusted EBITDA fell by 0.9% year over year to C$2,674 million, with a margin of 43.9% compared to 44.9% in the prior-year quarter [11] Subscriber Metrics - Postpaid mobile phone net subscriber activations were 44,547, down from 78,500 in the prior-year quarter, due to a 14.8% decline in gross activations [5][8] - Prepaid mobile phone net subscriber activations decreased to 49,932 from 52,543 in the prior-year quarter, driven by a 3.7% decline in gross activations [6][8] Media Segment - Bell Media revenues grew by 3.8% year over year to C$843 million, supported by an 8.1% increase in subscriber revenues, despite a 3.1% decline in ad revenues [10][8] Cash Flow and Guidance - Operating cash flow decreased by 8.9% year over year to C$1,947 million, while free cash flow increased by 5% to C$1,152 million [12][8] - BCE updated its 2025 financial guidance, now anticipating revenue growth of 0-2%, adjusted EBITDA growth of 0-2%, and a revised free cash flow outlook of 6% to 11% lower [13][14]

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Deutsche Telekom AG (DTEGY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question. Deutsche Telekom AG is one of 108 companies in the Utilities group. The ...

分组1 - BCE reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.52 per share, and down from $0.57 per share a year ago, representing an earnings surprise of -11.54% [1] - The company posted revenues of $4.4 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.69%, compared to year-ago revenues of $4.39 billion [2] - BCE has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates two times as well [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and the sustainability of earnings expectations [3] - BCE shares have added about 0.3% since the beginning of the year, underperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the coming quarter is $0.51 on $4.28 billion in revenues, and $2.03 on $17.61 billion in revenues for the current fiscal year [7] 分组3 - The Zacks Industry Rank indicates that the Diversified Communication Services sector is currently in the top 21% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for BCE was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Another stock in the Utilities sector, Telenor ASA (TELNY) , has outperformed the sector so far this year. The stock's year-to-date return is 42.1%. Over the past three months, Telenor ASA's consensus EPS estimate for the current year has increased 11.3%. The stock currently has a Zacks Rank #1 (Strong Buy). The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has MYR Group (MYRG) been one of those stocks this year? Let's ta ...

Core Insights - TELUS Corporation reported second-quarter 2025 adjusted earnings per share (EPS) of C$0.22, a decrease from C$0.25 in the same period last year [1] - Total operating revenues increased by 2% year over year to C$5,082 million, driven by strong revenue growth across all segments [1] - The company achieved total customer growth of 198,000 in the second quarter, with 167,000 additions in mobile and connected devices, and 31,000 in fixed customers [2] Financial Performance - TELUS' operating revenues from contracts with customers were C$5,031 million, reflecting a 3% year-over-year increase [1] - The company declared a quarterly dividend of C$0.4163 per share, a 7% increase from the previous year's C$0.3891 [2] - Adjusted EBITDA increased modestly by 0.8% year over year to C$1,812 million [18] Segment Results - TTech revenues rose 1% year over year to C$3,848 million, with operating revenues from contracts with customers increasing to C$3,793 million [5] - Mobile network revenues decreased by 1% to C$1,723 million, attributed to a decline in mobile phone ARPU [6] - Fixed data service revenues increased by 3% to C$1,193 million, supported by an expanding subscriber base [9] Strategic Developments - TELUS signed a definitive agreement with La Caisse to sell a 49.9% stake in Terrion for approximately $1.26 billion, valuing the operator at over $2.5 billion [3] - The proceeds from the deal will be used to accelerate debt reduction efforts, aiming for a net debt-to-EBITDA ratio of 3.0 by 2027 [3] Cash Flow and Guidance - Cash generated from operating activities was C$1,166 million, down from C$1,388 million in the previous year, while free cash flow increased by 11% to C$535 million [19] - TELUS reaffirmed its 2025 financial targets, expecting 2-4% growth in TTech operating revenues and 3-5% growth in adjusted EBITDA [20]

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Koninklijke KPN NV (KKPNF) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Another Utilities stock, which has outperformed the sector so far this year, is National Grid (NGG) . The stock has returned 20.9% year-to-date. For National Grid, the consensus EPS estimate for the current year has increased 9.1% over ...

Company Performance - Telus reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -5.88% [1] - The company posted revenues of $3.67 billion for the quarter ended June 2025, which was 0.17% below the Zacks Consensus Estimate and slightly up from $3.64 billion year-over-year [2] - Over the last four quarters, Telus has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Future Outlook - The immediate price movement of Telus shares will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the next quarter is $0.20 on revenues of $3.83 billion, and for the current fiscal year, it is $0.76 on revenues of $15.1 billion [7] - The estimate revisions trend for Telus was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Diversified Communication Services industry, to which Telus belongs, is currently in the top 17% 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]

Lumen (LUMN) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.24. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Lumen, which belongs to the Zacks Diversified Communication Services industry, posted revenues of $3.09 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.06%. Thi ...