TSX:TIXT - Post Discussion
Post by
retiredcf on May 04, 2023 1:02pm
RBC
May 4, 2023
TELUS International (Cda) Inc.
Starts the year with a mixed quarter & unchanged guidance
NYSE: TIXT | USD 19.60 | Outperform | Price Target USD 29.00
Sentiment: Neutral
TIXT’s 1Q23 revenue of $686M was modestly below RBCe and the Street, while adjusted EPS of $0.28 was $0.03 above our Street- matching estimate. Management reiterated FY23 guidance.
Quick takeaways. TIXT reported $686M/$0.28 in revenue/adj. EPS compared to RBCe of $688M/$0.25 and the Street at $691M/ $0.25. Revenue growth was 14.5% y/y and 16% constant-currency, vs. 5%/9% the previous quarter. Adj. EBITDA totaled $155M, below RBCe of $157M but in line with Street, or a margin of 22.6% vs 23.7% last year. The company generated $65M in free cash flow during the quarter, while the leverage ratio (as defined by the company’s credit agreement) increased to 2.8x vs. 1.1x last quarter with the closing of the WillowTree acquisition in January.
FY23 guidance reiterated. Unchanged FY23 guidance calls for revenue of $2.97B–$3.03B, adj. EBITDA of $705M–$725M, or a 23.7%–23.9% margin, and adj. EPS of $1.20–$1.25.
Conference call at 10:30 am ET.
Be the first to comment on this post