Chunghwa Telecom (NYSE:CHT) Issues Earnings Results, Beats Estimates By $0.08 EPS

Chunghwa Telecom (NYSE:CHT) announced its quarterly earnings data on Wednesday. The utilities provider reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.08, Zacks reports. Chunghwa Telecom had a net margin of 16.58% and a return on equity of 10.61%. The company had revenue of $767.85 million during the quarter, compared to analyst estimates of $1.91 billion.

Here are the key takeaways from Chunghwa Telecom’s conference call:

• Chunghwa reported record third-quarter results, with revenue up 16.7%, operating income up 27.1%, net income up 29.5% and EPS of NT$1.57; all major metrics exceeded the high end of guidance. Management said a one-time subsidiary asset-revitalization gain and stronger product sales contributed, but it does not expect a similar-sized gain in the near term.
• Core telecom services continued to grow: mobile service revenue rose nearly 3% year over year, while fixed broadband revenue increased 3%. 5G adoption, higher-speed broadband upgrades and low postpaid churn supported performance.
• Enterprise ICT revenue climbed 19%, with cloud, IDC, cybersecurity and AIoT all growing; cumulative ICT order intake by September exceeded 1.4 times the full-year 2025 level. Management highlighted rising recurring revenue and demand for AI and data-center services.
• Enterprise Business Group income before tax declined slightly as strong ICT growth brought higher project costs and a lower-margin revenue mix, alongside seasonal personnel expenses and bonus accruals. Management said it aims to improve project margins and expects recurring services to support ICT margins over time.
• Cash generation and the balance sheet remained strong: nine-month free cash flow rose 19.6% to NT$33.67 billion, and net debt to EBITDA was zero. Management said it is confident it will meet and potentially exceed its full-year forecast.

Chunghwa Telecom Stock Performance

CHT stock traded up $1.02 on Friday, hitting $49.88. The company had a trading volume of 155,757 shares, compared to its average volume of 188,389. The company has a current ratio of 1.22, a quick ratio of 1.07 and a debt-to-equity ratio of 0.06. Chunghwa Telecom has a 12-month low of $39.28 and a 12-month high of $50.15. The stock has a market cap of $38.69 billion, a price-to-earnings ratio of 28.83, a P/E/G ratio of 2.17 and a beta of 0.26. The stock’s 50-day simple moving average is $46.21 and its 200 day simple moving average is $43.92.

Analyst Ratings Changes

Several research firms have recently weighed in on CHT. Zacks Research upgraded Chunghwa Telecom from a “strong sell” rating to a “hold” rating in a research note on Thursday, September 17th. Weiss Ratings raised Chunghwa Telecom from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 30th. Two investment analysts have rated the stock with a Hold rating. According to MarketBeat.com, the stock currently has an average rating of “Hold”.

Chunghwa Telecom Company Profile

Chunghwa Telecom Co, Ltd. is Taiwan’s largest integrated telecommunications provider and the country’s former state-owned telecommunications operator. The company was established in 1996 following the corporatization of Taiwan’s Directorate General of Telecommunications and was subsequently privatized. Chunghwa Telecom is headquartered in New Taipei City, Taiwan.

The company provides fixed-line voice services, mobile communications, broadband internet access, and related digital communications products.