Q: Could you shed light on the change in BCE EPS since 2022 when it was a little above $2.50. EPS is currently below $1.50. It seems this is not due to an increased share count. What's the story?
Many thanks!
Many thanks!
5i Research Answer:
BCE’s fully diluted EPS in 2022 was $2.87. BCE’s fully diluted EPS in the trailing-twelve-months was $2.24. The share count during that period only increased slightly from 912M to 912.3M. BCE’s EBIT was also flat during that period. The drop in EPS was mainly because of higher interest expenses and other one-time expenses. Interest expenses rose $377M from 2021 levels to the last 12 months. This alone would account for 41c per share in change. The drop in EPS is not great, but given where they are today, we don't think future EPS should drop much further from here, considering its recent cost-cutting program. There is some upside potential as as rates fall and sentiment improves.