While the top- and bottom-line numbers for TDS (TDS) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Telephone & Data Systems (TDS) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.17 per share a year ago.
TDS is expected to announce EPS of -$0.13 and revenue of $1.24 billion pre-market on Friday, August 2nd. Assuming the US Cellular deal goes through, even with concessions, investors are looking at mid to high double-digit returns. Downside risk is mitigated by T-Mobile's M&A experience with Sprint.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
Does Telephone & Data Systems (TDS) have what it takes to be a top stock pick for momentum investors? Let's find out.
Telephone and Data Systems preferred stock has seen a 70% total return in about a year, outperforming the S&P 500 by an impressive margin. High interest rates and debt impacted the stock in recent years, but a strategic decision to sell assets has rendered the dividend safer. Risks remain as the company navigates hurdles to close the deal and may struggle to maintain the preferred dividend in the long run.
Telephone and Data Systems Preferred Shares offer a better combination of income and value compared to ordinary shares. TDS's recent financial performance shows mixed results, with strong competition leading to revenue pressure in the wireless segment. TDS's preferred shares, specifically the U series, with a 6.625% dividend yield and a call date for March 2026, seem to be a better option for investors.
The divestiture aligns with Telephone and Data Systems' (TDS) capital allocation strategy, aiming to boost competitiveness through targeted investments.
U.S. Cellular Corp. USM, -0.81%, and its parent Telephone and Data Systems Inc. TDS, -0.37%, announced an agreement Tuesday in which U.S. Cellular's wireless operations and certain spectrum assets will be sold to T-Mobile U.S. Inc. TMUS, +0.62% in a deal valued at $4.4 billion, including about $2 billion worth of debt. U.S. Cellular and TDS shares have been halted for news, while T-Mobile's stock slipped 0.2% in premarket trading.