United States Cellular Corp. (NYSE:USM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
United States Cellular Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 91.78% to $0.06 in the quarter versus EPS of $0.73 in the year-earlier quarter.
Revenue: Decreased 0.95% to $1.08 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: United States Cellular Corp. reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $-0.14. It missed the average revenue estimate of $1.1 billion.
Quoting Management: “We continued to expand our 4G LTE network and encourage customers to migrate, which has helped us further increase smartphone penetration and shift more customers to 4G LTE,” said Mary N. Dillon, U.S. Cellular president and CEO. “We added new prepaid customers through our Walmart distribution. In our core markets, postpaid gross additions were relatively flat and elevated churn resulted in a net customer loss.”
Key Stats (on next page)…
Revenue decreased 3% from $1.12 billion in the previous quarter. EPS increased to $0.06 in the quarter versus EPS of $-0.47 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 $0.58 to a loss $0.01. For the current year, the average estimate has moved down from a profit of $1.78 to a profit of $0.13 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)