All eyes will be on Telstra Group Ltd (ASX: TLS) shares next week.
That's because the telco giant will be releasing its half-year results on 15 February.
But what should investors expect from Telstra's first half? Let's take a look and find out.
Telstra half-year results preview
According to a note out of Goldman Sachs, its analysts are expecting Telstra to report EBITDA of $4,054 million and earnings per share of 9 cents. This is broadly in line with the consensus estimate of $4,038 million and 9 cents, respectively.
If Telstra delivers on expectations, it will mean a healthy ~15% increase on what was recorded during the prior corresponding period. For that period, Telstra posted EBITDA of approximately $3,500 million.
As for dividends, Goldman is forecasting an increase to 18 cents per share for the full year (from 17 cents per share). This is likely to mean an 8.5 cents per share interim dividend next week.
Should you buy Telstra shares?
Goldman believes investors should be snapping up the company's shares while they can.
This is due to its low risk earnings and dividend growth, attractive valuation, and potential asset divestments. It said:
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. […] Hence in an uncertain 2023 we rate Telstra Buy.
The broker has a buy rating and $4.65 price target on its shares.
