BT share price rose by more than 2.60%, becoming the third best-performing stock in the FTSE 100. The strong performance came after the company delivered relatively strong quarterly earnings.
BT Group news: BT, the giant British telecommunications firm reported relatively weak third-quarter earnings that beat the consensus. The company’s revenue dropped by 7% to £16.05 billion because of the coronavirus. It’s adjusted EBITDA dropped by 5% to £5.6 billion while the profit dropped by 17% to £1.59 billion.
Further, the firm said that it was adding about 42,000 Openreach customers per week, which has brought the total to more than 4.1 million. The CEO said:
“With no material impact expected from the Brexit deal and our resilient results so far this year, I remain confident in our EBITDA expectation of at least £7.9bn for 2022/23. Looking further ahead our new Digital unit will enable us to accelerate our digital and business transformation programmes.”
BT share price forecast
In my pre-earnings outlook, I predicted that the BT share price would bounce back as bulls target the year-to-date high of 147p. At the time, the shares were trading at 136p.
After dropping to 125p, the shares have bounced back and are now trading at 131p where they are attempting to move above the 15-day and 25-day exponential moving averages (EMA).
Notably, the stock seems to be forming a head and shoulders pattern whose right shoulder is at 140p.
Therefore, in my view, the stock will rise to ~140p and then resume the downward trend. In the near term, we should not rule out another drop to 120p. However, a move above the YTD high of 147p will invalidate the bearish thesis.
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BT stock chart
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