Telephone & Data Systems Inc. (NYSE:TDS) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Telephone & Data Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 97.92% to $0.01 in the quarter versus EPS of $0.48 in the year-earlier quarter.
Revenue: Rose 0.25% to $1.31 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Telephone & Data Systems Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.02. It beat the average revenue estimate of $1.29 billion.
Quoting Management: “U.S. Cellular and TDS Telecom moved forward aggressively with their strategic initiatives, though higher smartphone subsidies, reductions in regulatory support, and investment spending continued to impact profitability,” said LeRoy T. Carlson, Jr., TDS president and CEO.
Key Stats (on next page)…
Revenue decreased 2.76% from $1.35 billion in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.39 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.40 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $1.15 to a profit of $0.12 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)