PT Telekomunikasi Indonesia, Tbk (NYSE: TLK) will release its Q2 2021 financial results on Monday September 5, 2021.
What to look for
The company released its 1H 2021 results on August 31, 2021. Despite the pandemic, the company witnessed positive results, with revenue increasing 3.9% YoY to IDR 69.5 trillion. EBITDA was up 4.7%, with net income increasing 13.3% YoY for the first six months of 2021. The exceptional results demonstrated that the company's business strategy is on track towards stronger fundamentals and healthier conditions for the rest of the year. IndiHome continues to drive revenue growth and profitability for the company, with revenue jumping 24.2% to IDR 12.9 trillion thanks to more subscribers.
Earnings: Historical EPS performance for the past twelve quarters is total beat 0 (0%) and total miss 0 (0%). In the first quarter of 2021, the company reported earnings per share of $0.43, a considerable improvement from Q4 2020s $0.29 per share.
Revenue: For the fiscal year 2020, the company is guiding that they expect consolidated revenue to increase by low-to-mid single digits with EBITDA expected to be stable. The group's capex is expected to be 25% of the company's revenue minus additional capital expenses on 5G.
Historical Price Reaction into Earnings: Since the last earnings, the stock price has gained 4.8%. In the last 23 quarters following earnings releases, the share price has been DOWN on 13 quarters. Therefore, the historical price reaction suggests that the share price going DOWN is 56% after the company releases its Q2 2021 results. According to Stockearning’s algorithm, the predicted first-day move of the stock after earnings release is 1%, while the expected movement after seven days is 3%.
What analysts are saying
Deutsche Bank analyst Peter Milliken upgraded the stock from "Hold" to "Buy" with a price target of IDR 3,400, citing that the company had been through the worst.
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