Telecom's forecast after-tax profit for its first-quarter trading is expected to come in at $84 million to $87 million when it reports today, brokers Craigs Investment Partners and Forsyth Barr say.
Both results will be well down on the corresponding quarter last year, when after-tax profit was boosted to $163 million by a one-off $43 million tax credit.
Craigs Investment Partners broker Chris Timms is expecting Telecom to announce a share buy-back to return cash to shareholders and provide some share-price support.
Forsyth Barr broker Peter Young expected Telecom's New Zealand revenues to be "near flat" compared with the corresponding period last year, while Australian revenues might be down 11% to $235 million, due mainly to declines in calling a resale.
Forsyth Barr has an "accumulate" recommendation on the stock, with a valuation of $2.59. Craigs has a "hold" and a 12-month price target of $2.10.
