Telephone and Data Systems (NYSE:TDS) Announces Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Telephone and Data Systems reported a quarterly loss of ($0.05) EPS, missing the estimate of ($0.01) and showing a year-over-year revenue decline of 5.7%.
• The company declared a quarterly dividend of $0.04 per share, reflecting a 0.4% yield based on an annualized dividend payout of $0.16.
• Recent analyst activity includes a downgrade from "hold" to "sell" from Wall Street Zen and a decreased target price from JPMorgan Chase & Co. from $56.00 to $53.00.

Telephone and Data Systems (NYSE:TDS - Get Free Report) posted its quarterly earnings results on Monday. The Wireless communications provider reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.04), Briefing.com reports. The firm had revenue of $1.19 billion for the quarter, compared to analysts' expectations of $1.17 billion. Telephone and Data Systems had a negative net margin of 0.85% and a positive return on equity of 0.92%. The firm's revenue for the quarter was down 5.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.13) EPS.

Telephone and Data Systems Price Performance

NYSE TDS traded up $0.02 during trading hours on Thursday, reaching $38.83. The company's stock had a trading volume of 1,247,169 shares, compared to its average volume of 1,064,437. The firm has a market capitalization of $4.43 billion, a price-to-earnings ratio of -40.03 and a beta of 0.54. Telephone and Data Systems has a 1-year low of $20.04 and a 1-year high of $42.74. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.78 and a quick ratio of 1.55. The company's 50-day moving average is $36.76 and its two-hundred day moving average is $36.22.

Telephone and Data Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be issued a $0.04 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.16 dividend on an annualized basis and a yield of 0.4%. Telephone and Data Systems's dividend payout ratio is presently -15.24%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on TDS. JPMorgan Chase & Co. upped their target price on Telephone and Data Systems from $53.00 to $54.00 and gave the stock an "overweight" rating in a research note on Tuesday. Raymond James Financial upped their target price on Telephone and Data Systems from $49.00 to $50.00 and gave the stock an "outperform" rating in a research note on Tuesday. Finally, Wall Street Zen downgraded Telephone and Data Systems from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th.

Insider Transactions at Telephone and Data Systems

In other news, Director Prudence E. Carlson sold 6,320 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $38.05, for a total value of $240,476.00. Following the completion of the sale, the director directly owned 315,457 shares in the company, valued at $12,003,138.85. This represents a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Anita J. Kroll sold 29,047 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.02, for a total value of $1,133,413.94. Following the completion of the transaction, the chief accounting officer owned 19,892 shares of the company's stock, valued at $776,185.84. The trade was a 59.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 36,167 shares of company stock valued at $1,405,218 in the last ninety days. 14.97% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Quantinno Capital Management LP grew its position in Telephone and Data Systems by 16.6% in the second quarter. Quantinno Capital Management LP now owns 10,992 shares of the Wireless communications provider's stock worth $391,000 after acquiring an additional 1,561 shares during the period. Squarepoint Ops LLC purchased a new position in Telephone and Data Systems in the second quarter worth approximately $6,698,000. Qube Research & Technologies Ltd boosted its position in shares of Telephone and Data Systems by 0.6% during the second quarter. Qube Research & Technologies Ltd now owns 1,190,657 shares of the Wireless communications provider's stock worth $42,364,000 after buying an additional 6,729 shares during the period. Jump Financial LLC purchased a new position in shares of Telephone and Data Systems during the second quarter worth $308,000. Finally, First Trust Advisors LP boosted its position in shares of Telephone and Data Systems by 86.6% during the second quarter. First Trust Advisors LP now owns 141,985 shares of the Wireless communications provider's stock worth $5,052,000 after buying an additional 65,900 shares during the period. 80.00% of the stock is currently owned by hedge funds and other institutional investors.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.