All-time low shares amid macroeconomic challenges

  • Telus International shares hit all-time low
  • Earnings guidance lowered for the year
  • Revenue expectations revised to C$2.61bn – C$2.67bn
  • Shares down 32% at 6.12 Canadian dollars ($4.41)
  • Downgrade due to delayed demand recovery and macroeconomic headwinds
  • Adjusted EBITDA between C$465m – C$485m
  • Q2 operating revenues fell 7.9% to C$652m
  • Lower revenues from social media and tech clients

Telus International’s shares have hit an all-time low following the company’s downgraded outlook for the year and a missed second quarter. The telecom firm, which is majority owned by parent Telus, now expects revenue to be between C$2.61 billion and C$2.67 billion, down from previous expectations of C$2.79 billion to C$2.85 billion. Analyst Daniel Chan of TD Cowen noted that this implies a decline of 1.6% to 3.6%, significantly lower than the previously expected 3%-5% growth. The company has also revised its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be between C$465 million and C$485 million due to delayed demand recovery and macroeconomic headwinds. Operating revenues for Q2 fell 7.9% to C$652 million, primarily due to lower revenues from a large social media client and other technology clients. Chan commented on the situation, stating that revenue decreased 2% year-over-year in constant currency, below estimates of 2% growth.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Telus International’s lowered earnings guidance, reasons for the downgrade, and its impact on stock prices. It also includes quotes from TD Cowen’s Daniel Chan to provide additional context and analysis. The article is mostly focused on the main topic without any significant digressions or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Telus International’s lowered earnings guidance and reasons for the downgrade, but it lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge beyond reporting the news.
Public Companies: Telus International (TIXT), Telus (T)
Key People: Daniel Chan (Analyst at TD Cowen), Adriano Marchese (Author)

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Financial Relevance: Yes
Financial Markets Impacted: Telus International’s stock
Financial Rating Justification: The article discusses Telus International’s lowered earnings guidance, impacting its stock price and revenue expectations. This is relevant to financial topics as it pertains to a company’s performance and its effect on the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

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