"Outlook for the Telstra share price
I think the biggest factor in how the market reacts will be what the company says the profit outlook is for FY24 and beyond.
Things are looking positive for the company considering it has said in the last two financial years that it was going to increase its telco charges for customers at the rate of inflation. It’s also growing its number of subscribers.
This boost to revenue can be a key driver of both net profit after tax (NPAT) and cash flow.
Commsec numbers suggest FY24 EPS could rise by 15% to 19 cents, while Goldman Sachs estimates imply EPS could increase by 12% to 18.4 cents.
For me, one of the most important factors for a company to be able to deliver good shareholder returns is profit growth. Higher profit can drive the Telstra share price higher, particularly if its price/earnings (p/e) ratio stays the same.
It’s good news the business is expected to grow EPS in FY24 and FY25 because that could boost investor sentiment and help fund larger dividend payments in the coming years.
Foolish takeaway
It’s impossible to know what a share price is going to do in the short term, particularly over one month. If I had to guess, I think August will be a positive month for the Telstra share price. If the market falls then I’d suggest the Telstra share price could outperform because of its defensive earnings profile – nearly everyone uses the internet after all.
As a major company, I think it’s one of the more compelling ASX blue chip shares. Certainly, any price falls would make it better value".
https://www.**promotion blocked**.au/2023/07/31/heres-what-im-predicting-for-the-telstra-share-price-in-august/
(To open link, google "f.o.o.l.com harrison- then words in link above)
