Telephone and Data Systems (NYSE:TDS) Shares Gap Down After Earnings Miss

Posted by Defense World Staff on May 6th, 2023

Telephone and Data Systems, Inc. (NYSE:TDS – Get Rating) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $9.56, but opened at $8.99. Telephone and Data Systems shares last traded at $6.96, with a volume of 831,856 shares.

The Wireless communications provider reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.14). Telephone and Data Systems had a net margin of 1.15% and a return on equity of 1.10%. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter in the previous year, the firm posted $0.37 earnings per share.

Telephone and Data Systems Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 31st. Investors of record on Wednesday, March 15th were paid a dividend of $0.185 per share. This represents a $0.74 dividend on an annualized basis and a dividend yield of 9.33%. This is a positive change from Telephone and Data Systems’s previous quarterly dividend of $0.18. The ex-dividend date was Tuesday, March 14th. Telephone and Data Systems’s payout ratio is presently -924.88%.

Wall Street Analysts Forecast Growth

TDS has been the topic of a number of analyst reports. Morgan Stanley decreased their price objective on Telephone and Data Systems from $22.00 to $16.00 and set an “equal weight” rating on the stock in a research note on Tuesday, February 7th. StockNews.com initiated coverage on Telephone and Data Systems in a research note on Thursday, March 16th. They issued a “sell” rating on the stock. One investment analyst has rated the stock with a sell rating and three have assigned a hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $15.00.

Hedge Funds Weigh In On Telephone and Data Systems

A number of institutional investors have recently added to or reduced their stakes in the business. Ronald Blue Trust Inc. increased its position in shares of Telephone and Data Systems by 625.9% during the 4th quarter. Ronald Blue Trust Inc. now owns 3,361 shares of the Wireless communications provider’s stock valued at $46,000 after purchasing an additional 2,898 shares during the last quarter. Quadrant Capital Group LLC increased its position in shares of Telephone and Data Systems by 157.9% during the 4th quarter. Quadrant Capital Group LLC now owns 3,670 shares of the Wireless communications provider’s stock valued at $38,000 after purchasing an additional 2,247 shares during the last quarter. Covestor Ltd increased its position in shares of Telephone and Data Systems by 56.2% during the 1st quarter. Covestor Ltd now owns 3,954 shares of the Wireless communications provider’s stock valued at $75,000 after purchasing an additional 1,422 shares during the last quarter. Spire Wealth Management increased its position in shares of Telephone and Data Systems by 35.2% during the 4th quarter. Spire Wealth Management now owns 5,890 shares of the Wireless communications provider’s stock valued at $62,000 after purchasing an additional 1,535 shares during the last quarter. Finally, Dark Forest Capital Management LP increased its position in shares of Telephone and Data Systems by 1,011.3% during the 4th quarter. Dark Forest Capital Management LP now owns 6,990 shares of the Wireless communications provider’s stock valued at $73,000 after purchasing an additional 6,361 shares during the last quarter. 83.68% of the stock is currently owned by institutional investors.

Telephone and Data Systems Price Performance

The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.16 and a current ratio of 1.34. The stock has a market capitalization of $891.81 million, a P/E ratio of -90.24 and a beta of 1.02. The firm has a 50-day moving average price of $10.67 and a 200 day moving average price of $11.57.

About Telephone and Data Systems

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Telephone & Data Systems, Inc is a diversified telecommunications company, which engages in the provision of communications services, retail wireless connections, broadband, video, and voice connections. It operates through the following segments: UScellular, TDS Telecom, and Corporate, Eliminations, and Other.