United States Cellular (NYSE:USM) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• United States Cellular reported earnings of $0.36 per share, surpassing analyst expectations of $0.33, with quarterly revenue reaching $916.00 million, exceeding estimates of $907.73 million.
• Shares of United States Cellular increased 3.5% during midday trading, closing at $76.87, with a market capitalization of $6.53 billion.
• Upcoming price targets for the stock have been adjusted, with Raymond James setting a target of $84.00, reflecting a positive outlook on United States Cellular's performance.

United States Cellular (NYSE:USM - Get Free Report) announced its quarterly earnings data on Monday. The Wireless communications provider reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.03, Zacks reports. United States Cellular had a positive return on equity of 1.68% and a negative net margin of 0.68%. The firm had revenue of $916.00 million during the quarter, compared to analyst estimates of $907.73 million.

United States Cellular Stock Performance

Shares of United States Cellular stock traded up $3.63 during trading on Thursday, hitting $77.88. 1,000,445 shares of the stock were exchanged, compared to its average volume of 467,326. The stock has a market capitalization of $6.62 billion, a price-to-earnings ratio of -259.59 and a beta of 0.38. The company has a fifty day moving average price of $67.56 and a 200-day moving average price of $65.85. United States Cellular has a 1-year low of $51.20 and a 1-year high of $79.17. The company has a current ratio of 1.70, a quick ratio of 1.48 and a debt-to-equity ratio of 0.62.

United States Cellular Increases Dividend

The company also recently disclosed a special dividend, which will be paid on Tuesday, August 19th. Stockholders of record on Monday, August 11th will be paid a dividend of $23.00 per share. The ex-dividend date is Wednesday, August 20th. This is a boost from United States Cellular's previous special dividend of $0.06.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Raymond James Financial restated an "outperform" rating and set a $84.00 target price (up from $78.00) on shares of United States Cellular in a research report on Friday, July 25th. JPMorgan Chase & Co. lifted their price target on United States Cellular from $85.00 to $87.00 and gave the company an "overweight" rating in a research note on Tuesday.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of USM. First Trust Advisors LP grew its stake in shares of United States Cellular by 97.3% in the second quarter. First Trust Advisors LP now owns 77,313 shares of the Wireless communications provider's stock valued at $4,946,000 after acquiring an additional 38,120 shares in the last quarter. Goldman Sachs Group Inc. grew its position in United States Cellular by 83.3% in the first quarter. Goldman Sachs Group Inc. now owns 69,598 shares of the Wireless communications provider's stock valued at $4,813,000 after acquiring an additional 31,636 shares during the last quarter. Maverick Capital Ltd. acquired a new position in United States Cellular during the 2nd quarter worth approximately $1,570,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in United States Cellular by 28.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 53,830 shares of the Wireless communications provider's stock worth $3,722,000 after purchasing an additional 11,861 shares in the last quarter. Finally, WINTON GROUP Ltd acquired a new position in United States Cellular during the 2nd quarter worth approximately $433,000. 18.03% of the stock is currently owned by institutional investors and hedge funds.

About United States Cellular

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers, as well as wireless essentials, including cases, screen protectors, chargers, and memory cards; and consumer electronics comprising audio, home automation, and networking products.