Turkcell (TKC) Shares Plunge 4.42% Amid Earnings Scrutiny, Valuation Doubts

Turkcell Iletisim Hizmetleri AS (TKC) shares fell 4.42% on Tuesday, marking a third consecutive day of declines as the stock hit its lowest level since April 2024. An intraday drop of 6.97% underscored mounting investor concerns, with the cumulative three-day loss reaching 9.06%.

The sell-off coincided with renewed scrutiny of the telecom giant’s earnings trajectory and valuation dynamics. Recent projections indicate a 211.54% surge in earnings per share (EPS) over the next year, from $0.26 to $0.81, signaling sharp growth expectations. However, the stock’s low price-to-earnings (P/E) ratio of 4.09—well below industry peers—has raised questions about market confidence in translating forward-looking guidance into tangible performance.

Financial metrics highlight Turkcell’s operational resilience, including $5.08 billion in annual revenue and $717.47 million in net income. A 14.1% net margin reflects strong cost control and pricing power, yet the recent earnings report of $0.13 per share in Q2 2025 aligned with trailing performance rather than exceeding expectations. This lack of upside surprise, combined with a forward P/E of 23.02, suggests a valuation gap between current fundamentals and future optimism.

Analysts note that Turkcell’s ability to sustain its projected EPS growth will hinge on execution of strategic initiatives, such as 5G expansion or operational efficiency gains. The stock’s undervaluation, while potentially attractive, may struggle to gain traction without concrete evidence of accelerating profitability. As investors weigh near-term execution risks against long-term growth potential, the stock’s trajectory will likely remain volatile until earnings momentum aligns with market expectations.