Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

BT Q2 earnings: what next for the share price?

Challenging market conditions pushed the telecom provider’s shares to a four-year low in August, but the stock has gained more than 30% ahead of its Q2 results next week after unveiling its latest turnaround strategy.

When is BT’s results date?

BT will unveil its Q2 results on October 31.

BT’s results preview: what does the City expect?

BT faces a myriad of challenges, some created by the market and others by itself, with the company's balance sheet laden with debt at a time when competition among British telecom providers is high.

However, earlier this month, BT published its turnaround strategy which aims to ‘boost’ its UK business. The news was well-received by investors, sending its stock more than 30% higher to 206p, after hitting a four-year low of 158p in August.

Openreach, BT’s broadband and telephone network unit, remains a priority for the group. However, its margins are being squeezed by industry regulator, Ofcom, consumers stand to benefit from the watchdog’s close eye on broadband providers, with it helping to improve accessibility to high-speed internet connections at lower prices. But a better deal for consumers comes at the expense of limiting returns for investors.

BT remains on track to hit its full-year guidance, with the company looking to deliver adjusted EBITDA of between £7.9 billion - £8 billion, along with free cash flow of between £1.9 billion - £2 billion. However, the company remains under significant pressure from multiple angles and its turnaround strategy will need to provide tangible results if its stock is to continue to rise.

Looking to trade BT shares? Open a live or demo account with IG

BT: Technical Analysis

BT shareholders have had a tough time of it recently, with the stock losing 49% since the £4.11 peak back in November 2015. That decline has been alleviated to some extent by the 32% rally seen over the course of the past two-months.

However, we are certainly not out the woods yet, with that rally taking place within a wider downtrend that continues to hold. The weekly chart below highlights the two phases of this decline, with price having recently broken upwards to begin retracing this recent £2.48-1.57 selloff.

You can go long or short BT using derivaties such as CFDs and spread bets with IG

It is certainly clear that we are seeing a greater number of questions asked of this downtrend, with the two-year period of consistent selling now giving way to a 17-month period which has now seen two major rallies.

For now, the downtrend remains intact, with the stock likely to see the sellers come back into play within the £2.13-2.26 Fibonacci retracement zone. However, should we see price break through the £2.48 peak from November 2018, it would provide us with a wider bullish reversal signal.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.