1. Correction to my above post- the above J. Mickelboro quote is...

1. Correction to my above post- the above J. Mickelboro quote is from 16.2.23 (ie after 2023 Half Year results announced)


2. M-o-t-l-e-y F-o-o-l T. Harrison said 22.1.23 (ie before the half Year Results were announced)

"With the NBN transition complete, there are no more profit hits coming from that headwind. The company now expects to generate profit growth over the next few years.

Let’s have a look at what profit the company could generate in 2023.

FY23 expectations

I believe that theearnings per share (EPS)is one of the most relevant statistics to consider because it gives the (Telstra) share price context. It enables us to look at theprice/earnings (p/e) ratioin per-share terms.

Using the earnings estimate on Commsec, the business is currently expected to generate 16.8 cents of EPS. This translates into a forward p/e ratio of 25x.

Telstra has provided its own guidance for FY23. Total income is expected to be between $23 billion to $25 billion. Underlyingearnings before interest, tax, depreciation and amortisation (EBITDA)is expected to be between $7.8 billion to $8 billion. Freecash flowafter lease payments is expected to be between $2.6 billion to $3.1 billion.

It’s also worth pointing out that profit is expected to accelerate to FY25, according to Commsec.

In FY25, Telstra could generate 22.3 cents of EPS, putting the Telstra share price at under 19x FY25’s estimated earnings.

How will Telstra generate stronger profit?

Telstra is working on both growing its revenue and improving its profit margins.

The company announced last year that it wouldincrease pricesin line with inflation, which could give it a useful organic revenue boost from its large subscriber base.

Telstra is also working on itsT25 strategy. In September 2021, it announced its intention to achieve acompound annual growth rate (CAGR)of mid-single digits for underlying EBITDA and high-teens for underlying EPS to FY25.

It’s looking to reduce costs by another $500 million on top of the $2.7 billion it has already saved within the T22 strategy.

Part of that profit growth could come from its Pacific island telco acquisition –Digicel Pacific– which is a leading presence in places such as Fiji and PNG.

Plus, the board want to grow thedividendfor shareholders over time. Investors have already benefited from dividend growth after a 6.25% increase to theFY22final dividend to 8.5 cents per share.

According to Commsec, it could pay a grossed-updividend yieldof close to 6% in FY23.

My 2 cents on the Telstra share price

I think that the future looks much brighter for Telstra shares. Profit growth and dividend growth are two of the main things that will help drive the Telstra share price higher. Of theASX blue-chip shares, I think it could be one of the better buys".

https://www.**promotion blocked**.au/2023/01/22/my-profit-prediction-for-telstra-shares-in-2023/(Google "Harrison fool My Telstra profit prediction etc." to open the link fully)