Telephone and Data Systems (NYSE:TDS) Shares Gap Down Following Weak Earnings

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report)'s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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.

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

Telephone and Data Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Monday, March 17th were paid a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a yield of 0.46%. The ex-dividend date was Monday, March 17th. Telephone and Data Systems's dividend payout ratio (DPR) is currently -18.60%.

Analyst Upgrades and Downgrades

Separately, JPMorgan Chase & Co. upped their target price on Telephone and Data Systems from $53.00 to $56.00 and gave the stock an "overweight" rating in a research report on Monday, February 24th.

Institutional Investors Weigh In On Telephone and Data Systems

Institutional investors and hedge funds have recently made changes to their positions in the business. Independence Bank of Kentucky purchased a new stake in shares of Telephone and Data Systems in the fourth quarter worth approximately $41,000. Federated Hermes Inc. purchased a new position in Telephone and Data Systems during the 4th quarter worth $56,000. SBI Securities Co. Ltd. bought a new stake in shares of Telephone and Data Systems in the 4th quarter worth $74,000. Versant Capital Management Inc raised its holdings in shares of Telephone and Data Systems by 14.5% in the fourth quarter. Versant Capital Management Inc now owns 2,395 shares of the Wireless communications provider's stock valued at $82,000 after purchasing an additional 303 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in Telephone and Data Systems by 74.5% during the fourth quarter. Farther Finance Advisors LLC now owns 2,707 shares of the Wireless communications provider's stock worth $92,000 after purchasing an additional 1,156 shares during the last quarter. Institutional investors and hedge funds own 80.00% of the company's stock.

Telephone and Data Systems Stock Down 8.4 %

The stock's 50-day simple moving average is $36.18 and its 200-day simple moving average is $34.69. The company has a current ratio of 1.59, a quick ratio of 1.44 and a debt-to-equity ratio of 0.85. The firm has a market capitalization of $3.93 billion, a P/E ratio of -6.38 and a beta of 0.62.

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.