Telephone and Data Systems (NYSE:TDS) Shares Gap Down Following Weak Earnings

Telephone and Data Systems, Inc. (NYSE:TDS) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $37.64, but opened at $35.80. Telephone and Data Systems shares last traded at $35.29, with a volume of 332,881 shares changing hands.

The Wireless communications provider reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.07). Telephone and Data Systems had a negative net margin of 10.72% and a positive return on equity of 1.12%. The company had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter in the prior year, the firm posted $0.10 earnings per share. The business’s revenue was down 8.6% on a year-over-year basis.

Telephone and Data Systems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Monday, March 17th were paid a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a yield of 0.46%. The ex-dividend date was Monday, March 17th. Telephone and Data Systems’s payout ratio is presently -18.60%.

Analyst Upgrades and Downgrades

Separately, JPMorgan Chase & Co. upped their price objective on Telephone and Data Systems from $53.00 to $56.00 and gave the stock an “overweight” rating in a report on Monday, February 24th.

Institutional Trading of Telephone and Data Systems

Several hedge funds have recently made changes to their positions in TDS. World Investment Advisors LLC bought a new stake in Telephone and Data Systems during the third quarter worth approximately $294,000. Franklin Resources Inc. increased its position in shares of Telephone and Data Systems by 2.5% during the 3rd quarter. Franklin Resources Inc. now owns 78,508 shares of the Wireless communications provider’s stock valued at $1,855,000 after purchasing an additional 1,938 shares during the last quarter. Versant Capital Management Inc increased its position in shares of Telephone and Data Systems by 14.5% during the 4th quarter. Versant Capital Management Inc now owns 2,395 shares of the Wireless communications provider’s stock valued at $82,000 after purchasing an additional 303 shares during the last quarter. GAMMA Investing LLC raised its holdings in Telephone and Data Systems by 8.3% during the 4th quarter. GAMMA Investing LLC now owns 5,742 shares of the Wireless communications provider’s stock valued at $196,000 after buying an additional 440 shares during the period. Finally, CWA Asset Management Group LLC bought a new stake in Telephone and Data Systems in the fourth quarter worth $710,000. 80.00% of the stock is currently owned by hedge funds and other institutional investors.

Telephone and Data Systems Price Performance

The company has a quick ratio of 1.44, a current ratio of 1.59 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $3.93 billion, a PE ratio of -6.38 and a beta of 0.62. The firm’s 50 day simple moving average is $36.18 and its 200 day simple moving average is $34.56.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.