How did TU's Q1 2023 earnings surprise impact investor confidence?

TELUS Corporation's (NYSE:TU) Q1 2023 earnings report reflected a non-GAAP EPS of C$0.23, which was a notable miss by C$0.06 compared to the consensus estimate. Additionally, the revenue reported was C$5.06 billion, surpassing expectations by C$40 million. This mixed performance likely influenced investor confidence in the following ways:

1. **Revenue Beat Amidst EPS Miss**: The revenue beat could have initially boosted confidence in TU's growth prospects, as it indicated strong demand or effective market penetration. However, the EPS miss might have raised concerns about profitability and operational efficiency, potentially offsetting the positive impact of the revenue beat.
2. **Guidance and Future Prospects**: TU's guidance for a 11 to 14% increase in operating revenue and a 9.5 to 11% rise in adjusted EBITDA for 2023 could influence investor sentiment. Positive guidance can bolster confidence if investors believe the company is poised for growth, while a cautious or conservative outlook might lead to skepticism.
3. **Industrial Action and Labor Relations**: The news of a solidarity rally and picket training by United Steelworkers union members could have introduced uncertainty regarding potential disruptions to TU's operations. This might have negatively affected investor confidence, especially if there are concerns about productivity, service quality, or financial impacts from such actions.
4. **Market Reaction and Long-Term Outlook**: The market's reaction to the earnings release would be a key indicator of investor confidence. A sharp decline in stock price following the earnings report could reflect immediate concern, while a subsequent recovery might suggest that investors are reassured by the company's long-term prospects.

In conclusion, while the revenue beat and growth guidance might have provided some support, the EPS miss, guidance nuances, labor-related uncertainties, and market reactions would likely contribute to a complex picture of investor confidence. The overall effect on confidence would depend on how these factors are weighed against each other by investors.