BCE Earnings Report: EPS Drops 92%, Revenue Declines 1.1%
The significant decline in EPS and revenue has raised concerns about BCE's performance, with the company's profit margin and dividend payments also being impacted. Despite this, institutional investors have increased their stakes, and the company's shares have seen a recent increase. The mixed response from analysts and the forecasted growth rate will be crucial in determining the company's future prospects.
BCE's full-year 2024 earnings report revealed a significant decline in net income, with a 92% decrease from the previous year, and a 1.1% decrease in revenue to CA$24.4 billion. The company's profit margin dropped to 0.7%, down from 8.4% in 2023, with earnings per share (EPS) missing analyst estimates by 83% at CA$0.18.
The decline in EPS and revenue has raised concerns about the company's performance, with the profit margin dropping significantly. Despite this, BCE's shares have increased by 6.6% in the past week. The company's revenue is forecast to grow 2.2% annually over the next three years, compared to a 2.6% growth forecast for the Canadian telecom industry.
Institutional investors have increased their stakes in BCE, with several firms purchasing new shares. However, the company's dividend was cut, with a quarterly dividend of $0.6965 per share to be paid on April 15th. BCE's payout ratio is 2,283.33%, indicating a significant decrease in dividend payments.
The decline in BCE's earnings and revenue has led to a mixed response from analysts, with some issuing negative ratings and others downgrading the stock. The average 1-year target price is $40.00, with a range of estimates from $1.84 to $2.23 per share. As the company navigates these challenges, it remains to be seen how it will impact its future performance and growth prospects.
