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Telefonica, S.A. (TEF - Free Report) reported a second-quarter 2024 net income of €447 million, which declined 3.3% year over year. Earnings per share (EPS) totaled €0.07 (11 cents), topping the Zacks Consensus Estimate of 8 cents.
Quarterly total revenues increased 1.2% year over year to €10,255 million ($11,038.6 million) and beat the Zacks Consensus Estimate by 1.7%.
Telefonica Espana: Quarterly revenues in Spain increased 1% year over year on a reported basis to €3,127 million. This is due to the momentum of higher handset sales and service revenues. The quarterly adjusted EBITDA margin was 35.6%. Capital expenditure (CapEx) on a reported basis decreased 7.1% to €383 million in the quarter.
Telefonica Deutschland: Quarterly revenues were unchanged on a year-over-year basis at €2,090 million. This segment witnessed robust commercial activity in mobile throughout the second-quarter of 2024, in line with management goals, on the back of the successful promotion of ‘O2 Mobile’ friends & family tariffs and retention activities to manage churn. The quarterly adjusted EBITDA margin was 32.5%. CapEx decreased 9.9% to €233 million in the quarter.
VirginMedia-O2 U.K.: Quarterly revenues increased 0.6% due to Fixed revenue growth due to the implementation of contractual price increases for the first time, which drove a return to growth in ARPU per fixed-line customer relationship and increased nexfibre construction revenue.
Telefonica Brasil: Quarterly revenues in Brazil jumped 3.3% to €2,440 million, mainly due to growth in mobile services revenues. The quarterly adjusted EBITDA margin was stable at 41.5%. CapEx decreased 3.5% to €419 million in the quarter.
Telefonica Infra (Telxius): The unit maintained solid traffic growth and high profitability by leveraging a capital-efficient deployment of future-proof infrastructure.
Telefonica Tech: Revenues increased 11.2% year over year to €507 million owing to solid momentum across Cybersecurity and IoT business segments along with double-digit growth in bookings & funnel.
Telefonica Hispam: Quarterly revenues in the Telefonica Hispam segment decreased 0.1% to €2,249 million. The quarterly adjusted EBITDA margin was 18.5%. CapEx fell 5.4% to €175 million in the quarter.
Other Details
Quarterly adjusted EBITDA was €3,219 million, up 1.8% year over year. Operating income was €1,021 million in the quarter under review, which increased 7.8%.
Cash Flow & Liquidity
In the first half of the year, Telefonica generated €4,600 million of net cash from operating activities compared with €5,289 million year-ago period. The free cash outflow for the same period totaled €163 million.
As of Jun 30, 2024, the company had €5,268 million in cash and cash equivalents, with €33,813 million of non-current financial liabilities.
2024 Outlook Reiterated
The company expects revenues to grow approximately 1%. EBITDA is expected to rise 1% to 2%. CapEx-to-sales ratio is likely to be up to 13%.
In addition, the company announced a cash dividend of €0.30 per share, payable on December 2024 (€0.15 per share) and June 2025 (€0.15 per share).
Zacks Rank & Stocks to Consider
Telefonica currently carries a Zacks Rank #3 (Hold)
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 24.3% in the past year.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP’s long-term earnings growth rate is 10.7%. The company recently reported results for second quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 51.6% in the past year.
The Zacks Consensus Estimate for NVDA’s 2024 EPS has increased 1.5% in the past 60 days to $2.69. NVDA’s long-term earnings growth rate is 37.6%.
NVIDIA’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 18.43%. Shares of NVDA have gained 123.1% in the past year.
Note: €1 = $1.07631 (period average from Apr 1, 2024, to Jun 30, 2024)
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Telefonica's (TEF) Q2 Earnings & Revenues Beat Estimates
Telefonica, S.A. (TEF - Free Report) reported a second-quarter 2024 net income of €447 million, which declined 3.3% year over year. Earnings per share (EPS) totaled €0.07 (11 cents), topping the Zacks Consensus Estimate of 8 cents.
Quarterly total revenues increased 1.2% year over year to €10,255 million ($11,038.6 million) and beat the Zacks Consensus Estimate by 1.7%.
Telefonica SA Price, Consensus and EPS Surprise
Telefonica SA price-consensus-eps-surprise-chart | Telefonica SA Quote
Results by Business Units
Telefonica Espana: Quarterly revenues in Spain increased 1% year over year on a reported basis to €3,127 million. This is due to the momentum of higher handset sales and service revenues. The quarterly adjusted EBITDA margin was 35.6%. Capital expenditure (CapEx) on a reported basis decreased 7.1% to €383 million in the quarter.
Telefonica Deutschland: Quarterly revenues were unchanged on a year-over-year basis at €2,090 million. This segment witnessed robust commercial activity in mobile throughout the second-quarter of 2024, in line with management goals, on the back of the successful promotion of ‘O2 Mobile’ friends & family tariffs and retention activities to manage churn. The quarterly adjusted EBITDA margin was 32.5%. CapEx decreased 9.9% to €233 million in the quarter.
VirginMedia-O2 U.K.: Quarterly revenues increased 0.6% due to Fixed revenue growth due to the implementation of contractual price increases for the first time, which drove a return to growth in ARPU per fixed-line customer relationship and increased nexfibre construction revenue.
Telefonica Brasil: Quarterly revenues in Brazil jumped 3.3% to €2,440 million, mainly due to growth in mobile services revenues. The quarterly adjusted EBITDA margin was stable at 41.5%. CapEx decreased 3.5% to €419 million in the quarter.
Telefonica Infra (Telxius): The unit maintained solid traffic growth and high profitability by leveraging a capital-efficient deployment of future-proof infrastructure.
Telefonica Tech: Revenues increased 11.2% year over year to €507 million owing to solid momentum across Cybersecurity and IoT business segments along with double-digit growth in bookings & funnel.
Telefonica Hispam: Quarterly revenues in the Telefonica Hispam segment decreased 0.1% to €2,249 million. The quarterly adjusted EBITDA margin was 18.5%. CapEx fell 5.4% to €175 million in the quarter.
Other Details
Quarterly adjusted EBITDA was €3,219 million, up 1.8% year over year. Operating income was €1,021 million in the quarter under review, which increased 7.8%.
Cash Flow & Liquidity
In the first half of the year, Telefonica generated €4,600 million of net cash from operating activities compared with €5,289 million year-ago period. The free cash outflow for the same period totaled €163 million.
As of Jun 30, 2024, the company had €5,268 million in cash and cash equivalents, with €33,813 million of non-current financial liabilities.
2024 Outlook Reiterated
The company expects revenues to grow approximately 1%. EBITDA is expected to rise 1% to 2%. CapEx-to-sales ratio is likely to be up to 13%.
In addition, the company announced a cash dividend of €0.30 per share, payable on December 2024 (€0.15 per share) and June 2025 (€0.15 per share).
Zacks Rank & Stocks to Consider
Telefonica currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks from the broader technology space are Badger Meter,Inc. (BMI - Free Report) , SAP SE (SAP - Free Report) and NVIDIA Corporation (NVDA - Free Report) . BMI presently sports a Zacks Rank #1 (Strong Buy), whereas NVDA & SAP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 24.3% in the past year.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP’s long-term earnings growth rate is 10.7%. The company recently reported results for second quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 51.6% in the past year.
The Zacks Consensus Estimate for NVDA’s 2024 EPS has increased 1.5% in the past 60 days to $2.69. NVDA’s long-term earnings growth rate is 37.6%.
NVIDIA’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 18.43%. Shares of NVDA have gained 123.1% in the past year.
Note: €1 = $1.07631 (period average from Apr 1, 2024, to Jun 30, 2024)