Telephone And Data Systems Credits Q2 Profitability To 'Broadband Investments'
Portfolio Pulse from Anusuya Lahiri
Telephone And Data Systems, Inc (NYSE:TDS) reported Q2 fiscal 2024 revenues of $1.238 billion, slightly below the analyst consensus of $1.240 billion, and a loss of 13 cents per share, in line with expectations. UScellular revenues declined by 3%, while TDS Telecom segment revenues grew by 4% due to broadband investments. TDS expects UScellular service revenues of $2.95 billion-$3.05 billion and TDS Telecom operating revenues of $1.05 billion-$1.08 billion for FY24. TDS shares have gained 169% in the last 12 months but are trading lower by 1.47% premarket.
August 02, 2024 | 1:51 pm
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Telephone And Data Systems, Inc (NYSE:TDS) reported Q2 fiscal 2024 revenues of $1.238 billion, slightly below the analyst consensus of $1.240 billion, and a loss of 13 cents per share, in line with expectations. UScellular revenues declined by 3%, while TDS Telecom segment revenues grew by 4% due to broadband investments. TDS expects UScellular service revenues of $2.95 billion-$3.05 billion and TDS Telecom operating revenues of $1.05 billion-$1.08 billion for FY24. TDS shares have gained 169% in the last 12 months but are trading lower by 1.47% premarket.
The Q2 earnings report shows mixed results with revenues slightly below expectations and a loss in line with estimates. The decline in UScellular revenues is offset by growth in TDS Telecom due to broadband investments. The FY24 outlook remains unchanged, which may lead to a neutral short-term impact on the stock price. The premarket decline of 1.47% suggests a cautious market reaction.
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