Telephone and Data Systems (NYSE:TDS) Shares Gap Down After Earnings Miss

Shares of Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $37.64, but opened at $35.80. Telephone and Data Systems shares last traded at $35.29, with a volume of 332,881 shares trading hands.

The Wireless communications provider reported ($0.09) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.07). The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.18 billion. Telephone and Data Systems had a positive return on equity of 1.12% and a negative net margin of 10.72%. The business's revenue was down 8.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.10 earnings per share.

Telephone and Data Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Monday, March 17th were issued a dividend of $0.04 per share. The ex-dividend date of this dividend was Monday, March 17th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.47%. Telephone and Data Systems's dividend payout ratio is -15.24%.

Wall Street Analyst Weigh In

A number of research analysts have commented on TDS shares. Raymond James reiterated an "outperform" rating and set a $47.00 price target (down from $51.00) on shares of Telephone and Data Systems in a research report on Monday. JPMorgan Chase & Co. boosted their price objective on shares of Telephone and Data Systems from $53.00 to $56.00 and gave the company an "overweight" rating in a research report on Monday, February 24th.

Hedge Funds Weigh In On Telephone and Data Systems

Institutional investors have recently bought and sold shares of the stock. World Investment Advisors LLC bought a new stake in shares of Telephone and Data Systems during the third quarter valued at approximately $294,000. Franklin Resources Inc. increased its stake in shares of Telephone and Data Systems by 2.5% in the 3rd quarter. Franklin Resources Inc. now owns 78,508 shares of the Wireless communications provider's stock worth $1,855,000 after acquiring an additional 1,938 shares in the last quarter. GAMMA Investing LLC lifted its position in Telephone and Data Systems by 8.3% during the 4th quarter. GAMMA Investing LLC now owns 5,742 shares of the Wireless communications provider's stock valued at $196,000 after acquiring an additional 440 shares during the period. CWA Asset Management Group LLC bought a new stake in Telephone and Data Systems during the fourth quarter worth about $710,000. Finally, Diversified Trust Co grew its holdings in Telephone and Data Systems by 11.7% in the fourth quarter. Diversified Trust Co now owns 35,499 shares of the Wireless communications provider's stock worth $1,211,000 after purchasing an additional 3,729 shares during the period. 80.00% of the stock is owned by institutional investors.

Telephone and Data Systems Stock Up 1.1 %

The company has a quick ratio of 1.44, a current ratio of 1.59 and a debt-to-equity ratio of 0.85. The company's fifty day moving average price is $36.07 and its 200-day moving average price is $34.70. The stock has a market capitalization of $3.92 billion, a PE ratio of -6.36 and a beta of 0.57.

About Telephone and Data Systems

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.