Telstra’s future earnings are sensitive to delays in the NBN payments The latest announcement will see $600m in earnings pushed out to later years.
FY18 EPS reduces from $0.32 to $0.29. The good news is TLS has reiterated its $0.22 DPS guidance for FY18.
Further, we expect Telstra to develop additional long-term revenue streams through growth in Mobile as well as products within 5G and Big Data solutions.
However, as tempting as it is to accumulate TLS at these levels, it may prove prudent to wait for the “higher low” formation and the next Algo Engine buy signal.