Zacks Research Has Optimistic Outlook of TDS Q1 Earnings

Key Points

• Analysts at Zacks Research have raised their Q1 2027 earnings per share (EPS) estimate for Telephone and Data Systems from a loss of $0.01 to a profit of $0.01.
• Numerous research firms have recently upgraded the stock, with a consensus rating of "Moderate Buy" and an average price target of $52.00.
• Telephone and Data Systems declared a quarterly dividend of $0.04 per share, with a payout ratio of -16.49%, indicating potential uncertainty in its earnings.

Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) - Analysts at Zacks Research boosted their Q1 2027 EPS estimates for Telephone and Data Systems in a research note issued to investors on Monday, October 13th. Zacks Research analyst Team now anticipates that the Wireless communications provider will earn $0.01 per share for the quarter, up from their previous forecast of ($0.01). Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Telephone and Data Systems' current full-year earnings is ($0.31) per share.

Other equities research analysts also recently issued research reports about the stock. Weiss Ratings raised shares of Telephone and Data Systems from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, October 8th. Raymond James Financial increased their price objective on shares of Telephone and Data Systems from $49.00 to $50.00 and gave the company an "outperform" rating in a research note on Tuesday, August 12th. Wall Street Zen upgraded 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. increased their price objective 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, August 12th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Telephone and Data Systems has a consensus rating of "Moderate Buy" and an average price target of $52.00.

Telephone and Data Systems Stock Performance

Telephone and Data Systems stock opened at $38.46 on Tuesday. Telephone and Data Systems has a 12-month low of $23.04 and a 12-month high of $42.74. The company has a market capitalization of $4.42 billion, a price-to-earnings ratio of -39.65 and a beta of 0.39. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.78 and a quick ratio of 1.65. The firm's fifty day moving average price is $38.82 and its 200 day moving average price is $36.93.

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in TDS. Assetmark Inc. increased its position in shares of Telephone and Data Systems by 53.1% in the second quarter. Assetmark Inc. now owns 1,297 shares of the Wireless communications provider's stock worth $46,000 after acquiring an additional 450 shares in the last quarter. EverSource Wealth Advisors LLC increased its position 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 acquiring an additional 861 shares in the last quarter. Bayforest Capital Ltd increased its position in shares of Telephone and Data Systems by 121.8% in the first quarter. Bayforest Capital Ltd now owns 1,342 shares of the Wireless communications provider's stock worth $52,000 after acquiring an additional 737 shares in the last quarter. Osaic Holdings Inc. grew its position 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 valued at $106,000 after purchasing an additional 797 shares in the last quarter. Finally, Forum Financial Management LP purchased a new position in Telephone and Data Systems during the first quarter valued at approximately $200,000. 80.00% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Telephone and Data Systems

In other news, Director Prudence E. Carlson sold 4,452 shares of Telephone and Data Systems stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $38.50, for a total value of $171,402.00. Following the transaction, the director owned 311,005 shares of the company's stock, valued at $11,973,692.50. The trade was a 1.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Anita J. Kroll sold 8,608 shares of Telephone and Data Systems stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $39.09, for a total transaction of $336,486.72. Following the completion of the transaction, the chief accounting officer directly owned 17,087 shares in the company, valued at $667,930.83. This represents a 33.50% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 276,650 shares of company stock valued at $10,690,789 over the last quarter. Corporate insiders own 14.48% of the company's stock.

Telephone and Data Systems Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were given a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Monday, September 15th. Telephone and Data Systems's payout ratio is -16.49%.

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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