Zacks Research Has Optimistic Outlook of TDS Q1 Earnings

Key Points

• Zacks Research has revised its Q1 2026 EPS estimate for Telephone and Data Systems from (-0.05) to (-0.04), reflecting a more optimistic view on the company's financial performance.
• The stock has received favorable ratings from several brokerages, with Raymond James increasing its price target from $49.00 to $50.00 and maintaining an "outperform" rating.
• Telephone and Data Systems recently declared a quarterly dividend of $0.04, scheduled to be paid on September 30th, showcasing its commitment to return value to shareholders.

Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) - Equities research analysts at Zacks Research upped their Q1 2026 EPS estimates for shares of Telephone and Data Systems in a research report issued on Thursday, September 11th. Zacks Research analyst Team now anticipates that the Wireless communications provider will post earnings of ($0.04) per share for the quarter, up from their prior estimate of ($0.05). Zacks Research has a "Hold" rating on the stock. The consensus estimate for Telephone and Data Systems' current full-year earnings is ($0.31) per share. Zacks Research also issued estimates for Telephone and Data Systems' Q3 2026 earnings at ($0.01) EPS, Q4 2026 earnings at ($0.08) EPS, FY2026 earnings at ($0.11) EPS, Q2 2027 earnings at $0.02 EPS and FY2027 earnings at ($0.01) EPS.

A number of other brokerages have also recently commented on TDS. Raymond James Financial lifted their price objective on shares of Telephone and Data Systems from $49.00 to $50.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 12th. Wall Street Zen raised shares of Telephone and Data Systems from a "sell" rating to a "hold" rating in a research note on Sunday, August 17th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Telephone and Data Systems from $53.00 to $54.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Telephone and Data Systems has an average rating of "Moderate Buy" and a consensus target price of $52.00.

Telephone and Data Systems Stock Performance

Shares of NYSE:TDS opened at $39.25 on Monday. Telephone and Data Systems has a 52 week low of $22.51 and a 52 week high of $42.74. The stock has a market capitalization of $4.51 billion, a P/E ratio of -40.46 and a beta of 0.48. The firm has a fifty day simple moving average of $38.81 and a two-hundred day simple moving average of $36.54. The company has a quick ratio of 1.65, a current ratio of 1.78 and a debt-to-equity ratio of 0.85.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its quarterly earnings results on Monday, August 11th. The Wireless communications provider reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.04). Telephone and Data Systems had a negative net margin of 0.85% and a positive return on equity of 0.92%. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the prior year, the firm posted ($0.13) earnings per share. The business's revenue was down 5.7% on a year-over-year basis.

Telephone and Data Systems Dividend Announcement

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

Insider Buying and Selling at Telephone and Data Systems

In other news, Director Prudence E. Carlson sold 4,452 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $38.50, for a total value of $171,402.00. Following the completion of the sale, the director owned 311,005 shares in the company, valued at approximately $11,973,692.50. The trade was a 1.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Anita J. Kroll sold 8,608 shares of the business's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $39.09, for a total transaction of $336,486.72. Following the completion of the sale, the chief accounting officer owned 17,087 shares of the company's stock, valued at approximately $667,930.83. This represents a 33.50% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 276,650 shares of company stock worth $10,690,789. 14.97% of the stock is owned by company insiders.

Institutional Investors Weigh In On Telephone and Data Systems

Hedge funds and other institutional investors have recently bought and sold shares of the company. Assetmark Inc. boosted its stake in Telephone and Data Systems by 53.1% during the second quarter. Assetmark Inc. now owns 1,297 shares of the Wireless communications provider's stock worth $46,000 after buying an additional 450 shares during the period. EverSource Wealth Advisors LLC boosted its stake in Telephone and Data Systems by 191.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider's stock worth $47,000 after buying an additional 861 shares during the period. Bayforest Capital Ltd boosted its stake in Telephone and Data Systems by 121.8% during the first quarter. Bayforest Capital Ltd now owns 1,342 shares of the Wireless communications provider's stock worth $52,000 after buying an additional 737 shares during the period. Osaic Holdings Inc. boosted its stake in Telephone and Data Systems by 36.8% during the second quarter. Osaic Holdings Inc. now owns 2,965 shares of the Wireless communications provider's stock worth $106,000 after buying an additional 797 shares during the period. Finally, Lazard Asset Management LLC boosted its stake in Telephone and Data Systems by 85.6% during the fourth quarter. Lazard Asset Management LLC now owns 4,092 shares of the Wireless communications provider's stock worth $139,000 after buying an additional 1,887 shares during the period. 80.00% of the stock is currently 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.

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