Zacks Research Issues Optimistic Estimate for TDS Earnings

Key Points

• Zacks Research has raised its Q3 2027 earnings estimates for Telephone and Data Systems, projecting EPS of ($0.03), an improvement from a prior estimate of ($0.04).
• The company reported a revenue of $1.19 billion for Q2 2027, slightly surpassing analysts' expectations, but missed EPS estimates, posting ($0.05) against a consensus of ($0.01).
• Several analysts upgraded their ratings on TDS, with Raymond James raising its price target from $49.00 to $50.00, indicating a positive outlook for the stock.

Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) - Investment analysts at Zacks Research raised their Q3 2027 EPS estimates for Telephone and Data Systems in a report issued on Monday, October 13th. Zacks Research analyst Team now forecasts that the Wireless communications provider will post earnings per share of ($0.03) for the quarter, up from their prior estimate of ($0.04). 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. Zacks Research also issued estimates for Telephone and Data Systems' FY2027 earnings at $0.02 EPS.

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

Several other equities analysts have also issued reports 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 company an "outperform" rating in a report on Tuesday, August 12th. Wall Street Zen raised shares of Telephone and Data Systems from a "sell" rating to a "hold" rating in a report on Sunday, August 17th. Weiss Ratings raised shares of Telephone and Data Systems from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, October 8th. Finally, JPMorgan Chase & Co. lifted 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 report on Tuesday, August 12th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Telephone and Data Systems currently has an average rating of "Moderate Buy" and an average target price of $52.00.

Telephone and Data Systems Stock Performance

Shares of TDS stock opened at $38.67 on Wednesday. The firm has a market cap of $4.45 billion, a price-to-earnings ratio of -39.87 and a beta of 0.39. The company's 50 day moving average is $38.86 and its 200 day moving average is $36.94. 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 has a 52-week low of $23.84 and a 52-week high of $42.74.

Telephone and Data Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 15th were given a dividend of $0.04 per share. The ex-dividend date was Monday, September 15th. This represents a $0.16 dividend on an annualized basis and a 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 Telephone and Data Systems news, Director Prudence E. Carlson sold 6,320 shares of Telephone and Data Systems stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $38.05, for a total value of $240,476.00. Following the completion of the transaction, the director owned 315,457 shares of the company's stock, valued at approximately $12,003,138.85. The trade was a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Anita J. Kroll sold 29,047 shares of Telephone and Data Systems stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.02, for a total transaction of $1,133,413.94. Following the completion of the transaction, the chief accounting officer directly owned 19,892 shares of the company's stock, valued at $776,185.84. The trade was a 59.35% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 276,650 shares of company stock valued at $10,690,789. Company insiders own 14.48% of the company's stock.

Institutional Trading of Telephone and Data Systems

Hedge funds have recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Telephone and Data Systems in the 4th quarter worth approximately $237,000. GAMMA Investing LLC raised its holdings in shares of Telephone and Data Systems by 8.7% in the 1st quarter. GAMMA Investing LLC now owns 6,243 shares of the Wireless communications provider's stock valued at $242,000 after purchasing an additional 501 shares in the last quarter. Janney Montgomery Scott LLC raised its holdings in shares of Telephone and Data Systems by 10.9% in the 1st quarter. Janney Montgomery Scott LLC now owns 25,187 shares of the Wireless communications provider's stock valued at $976,000 after purchasing an additional 2,474 shares in the last quarter. CWA Asset Management Group LLC raised its holdings in shares of Telephone and Data Systems by 34.8% in the 1st quarter. CWA Asset Management Group LLC now owns 28,065 shares of the Wireless communications provider's stock valued at $1,087,000 after purchasing an additional 7,245 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. raised its holdings in shares of Telephone and Data Systems by 14.8% in the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 6,908 shares of the Wireless communications provider's stock valued at $268,000 after purchasing an additional 892 shares in the last quarter. Hedge funds and other institutional investors own 80.00% of the company's stock.

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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