BT share price has been trading sideways for the past few days after experiencing a massive decline after the company reported its earnings. The stock was trading 1.88% higher on Monday at 146.35p as the UK’s FTSE 100 index edged higher on the back of soaring oil prices. BT Group Plc has a total market cap of £14.255 billion.
BT share price has been under intense pressure for the past two weeks, after the company reported its earnings for the year ending March 2023. BT Group Plc is Britain’s biggest broadband and mobile provider, with operations in nearly 180 countries. BT Group reported that pro forma revenue and core earnings grew for the first time in six years in the year to the end of March.
However, the company’s free cash flow, as well as operations cost, took a toll over the period, sending the BT share price down by more than 7%. Free cash flow fell 5% over the year to £1.3 billion, at the end of its lower guidance, due to increased cash capital expenditure. The company’s forecasts for free cash flow for 2024 also came in lighter than analysts had expected.
The British company also announced that it would cut up to 55,000 jobs including contractors by 2030, nearly 40% of its workforce. The Group’s total number of workers would reduce from 130,000 to between 75,000 and 90,000 by its 2030 financial year. The company’s plan of massive layoffs by 2030 has seen most investors go into conservation mode around the stock, pulling the BT stock price lower.
BT Share Price Technical Analysis
The daily chart shows that the BT share price has been hovering slightly below the crucial level of 14p for the past few days. This level acted as a major resistance level before the price broke above it in April. The stock is moving above the 100-day and 200-day moving averages. Its Relative Strength Index (RSI) has moved above the signal line but remains below the neutral zone.
Therefore, while the BT share price outlook remains uncertain, a move past the critical level at 148p will have bulls eyeing the next resistance level at 154.50p. However, a move below the 100-day MA at 142.45p will invalidate the bullish thesis.