Insights

Telstra (ASX:TLS) FY 2021 results preview

Here’s what to expect from this telco giant on Thursday…
The post Telstra (ASX:TLS) FY 2021 results preview appeared first on The Motley Fool Australia. –

The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch very closely on Thursday.

This is because the telco giant will be releasing its highly anticipated full year results tomorrow morning.

And with the Telstra share price hitting a two-year high today, expectations certainly are high.

What is expected from Telstra in FY 2021?

According to a note out of Goldman Sachs, its analysts are expecting the company to report an 11% decline in income to $23.2 billion.

Whereas for its earnings, the broker has pencilled in a 16% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to $7.6 billion. This includes underlying EBITDA of $6.8 billion, which is towards the higher end of Telstra’s guidance of $6.6 billion to $6.9 billion.

And on the bottom line, a 27% decline in net profit after tax to $1.7 billion is being forecast by its analysts.

Despite this decline, Goldman still expects Telstra to maintain its final dividend at 8 cents per share. This will mean a fully franked full year dividend of 16 cents. Which, based on the current Telstra share price of $3.83, will mean a 4.2% yield for shareholders.

What could move the Telstra share price?

One thing that could have an impact on the Telstra share price tomorrow is its guidance for FY 2022.

Goldman Sachs is forecasting FY 2022 underlying EBITDA growth of 6% to $7.2 billion and NBN payments of $330 million. It notes that this compares to the company’s FY 2022 aspirations for mid to high single digit growth.

Another thing that could move the Telstra share price is commentary on its mobile business. Goldman notes that it will be looking at “2H21 Mobile Trends, with Telstra expecting postpaid ARPU to return to growth in 2H21 and accelerate in FY22E (GSe +1%/+5% in 2H21E/FY22E).”

It also expects “solid subscriber growth in a low churn market (postpaid +60k in 2H21 vs. 5Y avg. +130k).”

The Telstra share price is up 27% year to date.

The post Telstra (ASX:TLS) FY 2021 results preview appeared first on The Motley Fool Australia.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why the Aussie Broadband (ASX:ABB) share price rose 8% to a new high
How did the Telstra (ASX:TLS) share price respond last earnings season?
Telstra (ASX:TLS) and this ASX dividend share are rated as buys
These 3 ASX 200 shares were the most traded this Tuesday

The Telstra (ASX:TLS) share price just hit another new 52-week high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!