PLDT (NYSE:PHI) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

PLDT (NYSE:PHI) posted its quarterly earnings results on Thursday. The technology company reported $0.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.66 by ($0.05), FiscalAI reports. The firm had revenue of $903.22 million during the quarter, compared to the consensus estimate of $880.27 million. PLDT had a net margin of 13.62% and a return on equity of 27.37%.

Here are the key takeaways from PLDT’s conference call:

• PLDT maintained resilience but reported mixed earnings. First-half service revenue rose 1% to PHP 97.8 billion and EBITDA reached PHP 56.1 billion with a 52% margin, while telco core income fell 2% to PHP 16.6 billion and reported income declined 6% amid higher depreciation and foreign-exchange losses.
• Wireless trends improved materially during the quarter. Monthly top-ups moved from negative 3% in March to positive 1% in June, approximately positive 3% in July and 2%–3% in August, supported by selective price increases, personalized offers and strong network performance.
• Home operating indicators began recovering after first-quarter installation constraints. Fiber net additions more than doubled sequentially to 97,000 in the second quarter, postpaid net adds turned positive in May, and churn remained low, although revenue improvement is expected to lag the installation recovery by several months.
• Enterprise remained the strongest growth engine. Revenue increased 5%, ICT revenue rose 22% and tech services grew 35%, while Vitro data-center revenue climbed 13% with activated capacity potentially expanding from 34 megawatts to 62.4 megawatts.
• Lower capital spending and potential asset monetization support deleveraging. First-half CapEx fell to PHP 20.7 billion from PHP 27.4 billion, full-year guidance remains in the mid-PHP 50 billion range, and a potential Vitro REIT transaction could provide slightly over PHP 12 billion for debt repayment, reducing net debt-to-EBITDA from about 2.6 times to approximately 2.4 times.

PLDT Trading Down 0.6%

PLDT stock traded down $0.11 during midday trading on Thursday, hitting $19.50. 53,239 shares of the stock were exchanged, compared to its average volume of 136,613. The stock has a market capitalization of $4.21 billion, a PE ratio of 8.13, a P/E/G ratio of 2.89 and a beta of 0.60. The company has a fifty day simple moving average of $18.68 and a two-hundred day simple moving average of $20.48. The company has a quick ratio of 0.40, a current ratio of 0.42 and a debt-to-equity ratio of 2.10. PLDT has a 52 week low of $17.05 and a 52 week high of $24.51.

Institutional Trading of PLDT

A number of large investors have recently made changes to their positions in PHI. Invesco Ltd. lifted its position in PLDT by 14.1% in the 3rd quarter. Invesco Ltd. now owns 1,697,399 shares of the technology company’s stock valued at $31,741,000 after acquiring an additional 209,385 shares in the last quarter. UBS Group AG grew its holdings in shares of PLDT by 41.4% during the third quarter. UBS Group AG now owns 251,013 shares of the technology company’s stock worth $4,694,000 after buying an additional 73,439 shares in the last quarter. Jane Street Group LLC raised its position in PLDT by 227.9% in the 1st quarter. Jane Street Group LLC now owns 77,493 shares of the technology company’s stock valued at $1,695,000 after buying an additional 53,861 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in PLDT by 20.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 181,574 shares of the technology company’s stock valued at $3,951,000 after acquiring an additional 30,803 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in PLDT by 106.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 53,776 shares of the technology company’s stock worth $1,176,000 after acquiring an additional 27,769 shares during the last quarter. Institutional investors own 2.26% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Weiss Ratings downgraded shares of PLDT from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, June 3rd. TD Cowen restated a “hold” rating on shares of PLDT in a report on Thursday. Finally, Zacks Research raised shares of PLDT from a “strong sell” rating to a “hold” rating in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock presently has a consensus rating of “Hold”.

About PLDT

Philippine Long Distance Telephone Company (PLDT) is the largest integrated telecommunications provider in the Philippines, offering a comprehensive suite of fixed‐line, wireless, broadband Internet, and digital solutions to residential, enterprise, and government customers. Founded in 1928, PLDT has played a pivotal role in the development of the country’s communications infrastructure, evolving from a traditional operator of long‐distance telephone lines into a diversified digital services provider.

PLDT operates two main business segments: its fixed‐line and broadband operations under the PLDT brand and its wireless services through subsidiary Smart Communications.