Telephone and Data Systems (NYSE:TDS) Posts Quarterly 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) announced its earnings results on Monday. The Wireless communications provider reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.04), Briefing.com reports. The company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.17 billion. Telephone and Data Systems had a positive return on equity of 0.92% and a negative net margin of 0.85%. Telephone and Data Systems's revenue for the quarter was down 5.7% on a year-over-year basis. During the same period in the previous year, the company posted ($0.13) earnings per share.

Telephone and Data Systems Stock Down 0.7%

NYSE TDS traded down $0.27 during trading on Friday, reaching $38.55. 648,494 shares of the company's stock traded hands, compared to its average volume of 1,061,476. 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 firm has a market cap of $4.39 billion, a price-to-earnings ratio of -39.70 and a beta of 0.54. The company's 50 day simple moving average is $36.85 and its two-hundred day simple moving average is $36.24. Telephone and Data Systems has a 12-month low of $20.04 and a 12-month high of $42.74.

Telephone and Data Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a $0.04 dividend. This represents a $0.16 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Monday, September 15th. Telephone and Data Systems's dividend payout ratio (DPR) is currently -16.49%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on TDS. Wall Street Zen lowered shares of Telephone and Data Systems from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. JPMorgan Chase & Co. raised their price target on shares of Telephone and Data Systems from $53.00 to $54.00 and gave the company an "overweight" rating in a research note on Tuesday. Finally, Raymond James Financial upped their target price on shares of Telephone and Data Systems from $49.00 to $50.00 and gave the stock an "outperform" rating in a report on Tuesday.

Insider Buying and Selling

In other Telephone and Data Systems news, CAO Anita J. Kroll sold 800 shares of Telephone and Data Systems stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $39.16, for a total transaction of $31,328.00. Following the completion of the sale, the chief accounting officer directly owned 19,492 shares in the company, valued at approximately $763,306.72. The trade was a 3.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Prudence E. Carlson sold 6,320 shares of Telephone and Data Systems stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $38.05, for a total transaction of $240,476.00. Following the sale, the director owned 315,457 shares of the company's stock, valued at approximately $12,003,138.85. The trade was a 1.96% 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 over the last quarter. 14.97% of the stock is owned by company insiders.

Hedge Funds Weigh In On Telephone and Data Systems

Several hedge funds and other institutional investors have recently bought and sold shares of TDS. EverSource Wealth Advisors LLC grew its stake in shares of Telephone and Data Systems by 191.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider's stock worth $47,000 after purchasing an additional 861 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Telephone and Data Systems in the first quarter valued at $248,000. Jump Financial LLC purchased a new stake in shares of Telephone and Data Systems during the second quarter valued at $308,000. Quantinno Capital Management LP increased its holdings in shares of Telephone and Data Systems by 16.6% during the 2nd quarter. Quantinno Capital Management LP now owns 10,992 shares of the Wireless communications provider's stock valued at $391,000 after acquiring an additional 1,561 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its position in shares of Telephone and Data Systems by 358.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 27,043 shares of the Wireless communications provider's stock worth $962,000 after acquiring an additional 21,142 shares during the period. 80.00% of the stock is owned by institutional investors and hedge funds.

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.