Telus reported a significant Q2 earnings and revenue miss, alongside a drastic 55% dividend cut and sharply lowered full-year guidance across all metrics. This news has led to a substantial sell-off in TU shares, hitting a new 52-week low, as investors react negatively to the company's performance and outlook.
Telus Corp. announced a highly disappointing second-quarter, missing analyst estimates for both earnings and revenue. The most impactful news was the 55% reduction in its quarterly dividend, a move aimed at freeing up $2.7 billion for debt reduction, signaling significant financial pressure. Furthermore, the company slashed its full-year guidance for service revenue and adjusted EBITDA, while simultaneously increasing capital expenditure plans. This confluence of negative factors indicates a challenging period ahead for Telus, leading to a sharp decline in its stock price and raising concerns for income-oriented investors and those holding the stock for stability.