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TELUS (TU) Invests C$14M to Boost PureFibre Network Expansion

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TELUS Corporation (TU - Free Report) is making a private investment of C$14 million to set up PureFibre Network in the  Estrie region of Canada. The investment will be a combined Canadian and Quebec governments’ investment (more than C$5 million) as part of the Operation High-Speed program (Éclair I component).

The endeavor aims to close the digital gap by encouraging innovation in local businesses, promoting tourism, attracting young employees and speeding up the development of virtual health and education services. The network will be rolled out in Frontenac, Lac-Mégantic and Sainte-Cécile-de-Whitton and some chosen households in the suburbs of Audet and Lac-Drolet communities, stated TELUS.

Also, the company is teaming up with the Regional Municipality of Wood Buffalo (RMWB) to connect several rural communities directly to the PureFibre network. The company expects to connect more than 90% of homes and businesses to the network by the end of 2023. TELUS and the RMWB will invest C$21 million for this project, with the latter contributing C$13.2 million.

TELUS Corporation Price and Consensus

 

TELUS Corporation Price and Consensus

TELUS Corporation price-consensus-chart | TELUS Corporation Quote

 

Earlier, TELUS announced investment of C$17.5 billion in British Columbia and C$11 billion in Quebec to boost network infrastructure, operations and spectrum and generate employment opportunities. The company has committed to an overall investment of C$70 billion across Canada by 2026.

Expanding its high-speed PureFibre network will likely help TELUS boost its subscriber base and top-line performance. TELUS Corporation is a leading Canadian telecom service provider based in Vancouver, Canada. The company has launched 5G networks in several places across Canada. It acquired a 100% stake in Mobile Klinik to grow its wireless business. It is well-positioned to benefit from the increasing penetration of smart devices, wireless data services and wireline fiber-optic networks.

TELUS recently reported strong first-quarter 2022 results driven by subscriber growth and double-digit revenue growth across the TELUS International, TELUS Health and TELUS Agriculture segments. Quarterly total operating revenues increased 6.4% year over year to C$4,282 million ($3,381 million). It reported adjusted earnings per share of C$0.30 (24 cents) in first-quarter 2022 compared with C$0.27 per share in the prior-year quarter.

TELUS currently has a Zacks Rank #3 (Hold). Shares of TU have gained 7% against the industry’s gain of 1.1% in the past year.

Stocks to Consider

A few better-ranked stocks from the broader technology sector worth consideration are InterDigital (IDCC - Free Report) , Avnet (AVT - Free Report) and Cadence  Design Systems (CDNS - Free Report) . While Avnet and InterDIgital sport a Zacks Rank #1 (Strong Buy), Cadence carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cadence 2022 earnings is pegged at $3.94 per share, up 5.6% in the past 60 days. The long-term earnings growth rate is pegged at 17%.

Cadence earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 10.6%. Shares of CDNS have surged 20.5% in the past year.
The Zacks Consensus Estimate for InterDigital 2022 earnings is pegged at $3.28 per share, up 5.1% in the past 60 days. IDCC’s long-term earnings growth rate is pegged at 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 141.1%. Shares of IDCC have lost 19.3% of their value in the past year.

The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.

Avnet’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 21.22%. Shares of Avnet have grown 7.6% in the past year.


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