Telstra (ASX:TLS) share price jumps higher despite trimming earnings guidance on slower NBN roll out

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The Telstra (ASX:TLS) share price has gained 10 cents or 3.3 per cent to $3.12 in Thursday morning trade after the company trimmed its full-year earnings guidance range because a lower than expected number of NBN customers are available for connection.

The communications giant says income will be $300 million lower than previously expected because the national broadband network’s corporate plan includes fewer than expected premises declared ready for service.

As a result, Telstra has trimmed its earnings guidance excluding restructuring costs to between $8.7 billion and $9.4 billion from between $8.8 billion and $9.5 billion.

Telstra shares have had a good run over the past 10 weeks, jumping almost 20 per cent higher since they bottomed out at $2.62.

However, Telstra shares still hold the dubious distinction of being the worst performing ASX 20 stock over the past 12 months, losing almost 19 per cent.

Next worse ASX 20 stock over that period was Westpac Banking Corp (ASX:WBC), the WBC share price falling 10 per cent in the last year. Despite that, the top performing Platypus Australian Equities Fund has named Westpac shares as one if its top five holdings.

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Telstra shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Telstra was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Telstra. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au