Stock Track | TELUS International Soars 5.49% as Q4 Results Show Resilience, 2025 Outlook Signals Growth

Stock Track
13 Feb

TELUS International (Cda) Inc. (TIXT) stock surged 5.49% in the pre-market session on Thursday, following the company's fourth quarter and full-year 2024 results that showed resilience in its operating performance amid challenging conditions. The company also provided an optimistic outlook for 2025, fueling investor confidence.

For the fourth quarter of 2024, TELUS Digital reported revenue of $691 million, steady compared to the same period last year. However, the company posted a net loss of $54 million, primarily due to higher salaries and benefits, goods and services purchased, and other expenses. In the year-ago quarter, the company had reported a net income of $38 million.

For the full-year 2024, TELUS Digital's revenue decreased by 2% year-over-year to $2.66 billion, reflecting declines with certain clients, partially offset by growth with existing and new clients. The company reported a net loss of $61 million, compared to a net income of $54 million in 2023, primarily due to lower revenues earned and higher costs.

Despite the challenges, TELUS Digital provided an optimistic outlook for 2025, projecting revenue growth of approximately 2% on an organic basis. The company expects Adjusted EBITDA of around $400 million and Adjusted Diluted EPS of approximately $0.32 for the year, indicating a turnaround in profitability.

Investors cheered the company's resilient performance and its growth prospects, sending TELUS International's stock soaring in the pre-market session. The stock's surge reflects the market's confidence in the company's ability to navigate through the current economic landscape and capitalize on emerging opportunities in the digital transformation and customer experience management sectors.

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