Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: United States Cellular (USM) - USM currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4]. Performance Metrics - Over the past week, USM shares increased by 0.24%, outperforming the Zacks Wireless National industry, which rose by 0.12% [6]. - In a longer timeframe, USM's monthly price change is 5.06%, compared to the industry's 3.72% [6]. - Over the last quarter, USM shares have risen by 7.5%, and they have surged by 89.02% in the past year, while the S&P 500 has seen declines of -2.97% and gains of 15.34%, respectively [7]. Trading Volume - USM's average 20-day trading volume is 124,421 shares, which serves as a baseline for price-to-volume analysis [8]. Earnings Outlook - In the past two months, two earnings estimates for USM have been revised upwards, increasing the consensus estimate from $1.06 to $1.16 [10]. - For the next fiscal year, two estimates have also moved upwards, with no downward revisions noted [10]. Conclusion - Given the positive momentum indicators and earnings outlook, USM is positioned as a strong buy candidate for investors seeking short-term opportunities [12].

Core Viewpoint - United States Cellular (USM) shares have increased by 3.5% recently, with analysts suggesting a potential upside of 31.8% based on a mean price target of $85.67 [1] Price Targets - The average price target for USM ranges from a low of $85 to a high of $86, with a standard deviation of $0.58, indicating a strong consensus among analysts [2] - The lowest estimate suggests a 30.8% increase, while the highest indicates a 32.3% upside [2] - Analysts' price targets should be approached with caution, as they may not always accurately reflect future stock movements [3][5][8] Earnings Estimates - Analysts show strong agreement in revising USM's earnings estimates upward, which correlates with potential stock price increases [4][9] - The Zacks Consensus Estimate for the current year has risen by 0.9% over the past month, with no negative revisions [10] - USM holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors [11] Analyst Behavior - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated expectations [6] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price direction [7]

Core Insights - U.S. Cellular Corporation (USM) reported strong fourth-quarter 2024 results, with both revenue and net income exceeding Zacks Consensus Estimates despite a year-over-year revenue decline due to reduced retail connections [1][4]. Financial Performance - The company generated $970 million in operating revenues, down from $1 billion in the prior-year quarter, but surpassed the Zacks Consensus Estimate of $945 million [4]. - Net income for the quarter was $5 million (5 cents per share), compared to $14 million (16 cents per share) in the same quarter last year, beating the Zacks Consensus Estimate by 15 cents [3]. - For the full year 2024, total revenues were reported at $3.77 billion, a decrease from $3.906 billion in 2023 [4]. Revenue Breakdown - Service revenues decreased to $742 million from $755 million year-over-year, exceeding the Zacks Consensus Estimate of $726.4 million [5]. - Equipment sales generated $228 million, down from $245 million in the prior-year quarter [5]. Customer Metrics - Fixed wireless customers increased by 27% year-over-year to 145,000, contributing positively to revenue [6]. - Total postpaid connections fell to 3,985,000 from 4,106,000 year-over-year, while total prepaid connections decreased slightly to 448,000 from 451,000 [7]. Churn and ARPU - The postpaid churn rate improved to 1.29% from 1.44% a year ago, while prepaid churn decreased to 3.70% from 3.87% [8]. - Postpaid average revenue per user (ARPU) rose to $51.73 from $51.61, while prepaid ARPU fell to $30.59 from $32.32 [8]. Operational Metrics - Adjusted EBITDA for the quarter was $208 million, down from $233 million in the prior-year quarter [9]. - Total operating expenses remained stable at $979 million, resulting in an operating loss of $9 million compared to an operating income of $21 million in the previous year [9]. Cash Flow and Liquidity - Cash generated from operating activities in the December quarter was $121 million, down from $148 million year-over-year, while total cash from operations for 2024 was $883 million compared to $866 million in 2023 [10]. - As of December 31, 2024, the company had $144 million in cash and cash equivalents and $2.83 billion in long-term debt, compared to $150 million and $3.04 billion, respectively, at the end of the prior year [11].

Group 1 - U.S. Cellular reported $970 million in revenue for Q4 2024, a year-over-year decline of 3%, with an EPS of $0.05 compared to $0.16 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $944.89 million by 2.66%, while the EPS surprise was 150.00% against a consensus estimate of -$0.10 [1] - The stock has returned +6.6% over the past month, outperforming the Zacks S&P 500 composite's +2.2% change, and currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Net additions for Retail Connections - Postpaid were -14 million, significantly better than the estimated -42.5 million [4] - Gross additions for Retail Connections - Postpaid were 140 million, exceeding the average estimate of 116.51 million [4] - Total connections stood at 4.43 million, slightly below the average estimate of 4.45 million [4] Group 3 - ARPU for Prepaid was $30.59, lower than the average estimate of $31.43, while the Prepaid churn rate was 3.7%, matching the average estimate [4] - ARPU for Postpaid was $51.73, also below the average estimate of $52.16 [4] - Operating revenues from equipment sales were $228 million, surpassing the average estimate of $205.61 million, but represented a year-over-year decline of 6.9% [4] - Operating revenues from service were $742 million, slightly above the average estimate of $739.28 million, reflecting a year-over-year decline of 1.7% [4]

United States Cellular (USM) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.10 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this wireless telecommunications service provider would post earnings of $0.18 per share when it actually produced earnings of $0.26, delivering a surprise ...

Financial Performance - UScellular reported a net loss attributable to shareholders of $39 million for the year ended December 31, 2024, which includes a non-cash impairment charge of $136 million related to certain wireless spectrum licenses [161]. - Net income attributable to UScellular shareholders was a loss of $39 million in 2024, compared to a profit of $54 million in 2023, marking a significant decline [165]. - UScellular reported a net loss of $32 million for 2024, compared to a net income of $58 million in 2023 [295]. - Adjusted EBITDA for 2024 was $1,018 million, an increase from $986 million in 2023, reflecting a growth of approximately 3.2% [295]. - Operating revenues decreased to $3,770 million in 2024 from $3,906 million in 2023, representing a decline of about 3.5% [306]. - The loss on impairment of licenses was $136 million in 2024, compared to no impairment in 2023, impacting net income significantly [301]. - UScellular's operating income for 2024 was a loss of $12 million, down from a profit of $139 million in 2023 [306]. - Basic earnings per share attributable to UScellular shareholders was a loss of $0.46 in 2024, compared to a profit of $0.64 in 2023 [306]. - Total equity for UScellular shareholders decreased to $4,577 million in 2024 from $4,626 million in 2023, indicating a decline in shareholder value [312]. Revenue and Connections - The company serves 4.4 million retail connections, comprising 4.0 million postpaid and 0.4 million prepaid connections, and operates in 21 states [153]. - Total retail connections at the end of 2024 were 4,433,000, a decrease from 4,557,000 in 2023, and down from 4,740,000 in 2022 [173]. - Wireless operating revenues declined by 4% in 2024 to $3,667 million, down from $3,805 million in 2023, and decreased by 7% from $4,076 million in 2022 [183]. - Retail service revenues decreased by 2% in 2024 to $2,674 million, down from $2,742 million in 2023, and also decreased by 2% from $2,793 million in 2022 [183]. Strategic Initiatives - UScellular's strategic shift includes the planned sale of its wireless operations to T-Mobile for a purchase price of $4,400 million, which includes $2,000 million in debt assumption and $100 million contingent on financial metrics [155]. - The strategic alternatives review process is ongoing as UScellular seeks to monetize spectrum assets not subject to existing agreements [159]. - UScellular has agreed to sell its wireless operations and select spectrum assets to T-Mobile, with additional agreements to sell spectrum licenses to Verizon and AT&T [279]. Capital Expenditures and Investments - Capital expenditures decreased by 6% in 2024 to $577 million, down from $611 million in 2023, and decreased by 15% from $717 million in 2022 [165]. - UScellular's capital expenditures in 2024 were primarily focused on deploying 5G technology and investing in information technology, with total capital expenditures amounting to $1,179 million [235][248][254]. - Cash paid for additions to property, plant, and equipment was $537 million in 2024, down from $608 million in 2023, reflecting a decrease in capital expenditures [308]. Debt and Financing - The estimated fair value of long-term debt obligations was $2,785 million as of December 31, 2024, compared to $2,611 million in 2023 [289]. - The total long-term debt obligation as of December 31, 2024, was $2,923 million, with a weighted average interest rate of 6.1% [288]. - Long-term debt decreased to $2,837 million in 2024 from $3,044 million in 2023, showing a reduction in leverage [312]. - UScellular had available undrawn borrowing capacity of $748 million as of December 31, 2024, including $300 million from a revolving credit agreement [221]. Operational Metrics - UScellular employs approximately 4,100 associates and owns 4,409 towers, operating 7,010 cell sites [153]. - Total operating revenues decreased by 3% in 2024 to $3,770 million compared to $3,906 million in 2023, and decreased by 6% from $4,169 million in 2022 [165]. - Total operating expenses increased by 3% in 2024 to $156 million, attributed to higher system operations expenses [210]. - The company incurred third-party expenses related to strategic alternatives of $35 million in 2024, compared to $8 million in 2023 [160]. Spectrum and Technology - UScellular has focused on deploying 5G technology, enhancing speed and capacity, with investments expected to continue in mid-band spectrum deployment [158]. - UScellular recorded a $136 million impairment loss on wireless spectrum licenses in the third quarter of 2024, primarily affecting the retained high-band spectrum unit [264]. - The FCC's 5G Fund for Rural America will distribute up to $9 billion over ten years to enhance 5G connectivity in rural areas [272]. - UScellular's wireless spectrum licenses are considered indefinite-lived intangible assets, with no impairment recorded in 2023 [337]. Shareholder Actions - UScellular repurchased 939,999 common shares for $55 million in 2024, with an average cost per share of $58.06 [242]. - The company reported a bad debts expense of $97 million in 2024, a decrease from $104 million in 2023, suggesting improved credit management [308].

Financial Performance - UScellular reported total operating revenues of $970 million for Q4 2024, a decrease of 3% from $1,000 million in Q4 2023[3] - Net income attributable to UScellular shareholders for Q4 2024 was $5 million, down from $14 million in Q4 2023, resulting in diluted earnings per share of $0.05 compared to $0.16[3] - For the full year 2024, total operating revenues were $3,770 million, a decline of 3.5% from $3,906 million in 2023[4] - The net loss attributable to UScellular shareholders for 2024 was $(39) million, with diluted earnings per share of $(0.46), compared to a net income of $54 million and earnings per share of $0.63 in 2023[4] - Adjusted EBITDA for the year ended December 31, 2024, was $1,018 million, an increase of 3% from $986 million in 2023[31] - Cash flows from operating activities for the year ended December 31, 2024, were $883 million, compared to $866 million in 2023, reflecting a slight increase[25] - Basic earnings per share attributable to UScellular shareholders for Q4 2024 were $0.05, down 68% from $0.17 in Q4 2023[23] - Operating income for Q4 2024 was a loss of $9 million, compared to a profit of $21 million in Q4 2023[23] - Adjusted EBITDA (Non-GAAP) fell by 16% to $137 million for the three months ended December 31, 2024, compared to $164 million in 2023[33] - Free cash flow (Non-GAAP) was negative at $(53) million for the three months ended December 31, 2024, compared to $(44) million in 2023[35] - Operating income (GAAP) for Q4 2024 was $18 million, down from $21 million in Q4 2023, with full year operating income slightly increasing to $78 million from $77 million[41] Customer Metrics - Fixed wireless customers grew by 27% year-over-year, indicating a positive trend in customer acquisition despite overall subscriber losses[8] - Postpaid and prepaid churn rates improved, with postpaid churn at 1.29% and prepaid churn at 3.70%[20] Capital Expenditures - Capital expenditures for Q4 2024 were $162 million, up from $148 million in Q4 2023, supporting ongoing network enhancements[20] - Capital expenditures for the year ended December 31, 2024, totaled $577 million, a decrease of 6% from $611 million in 2023[31] - Capital expenditures increased by 21% to $154 million for the three months ended December 31, 2024, compared to $127 million in 2023[33] Asset and Liability Management - Total assets as of December 31, 2024, were $10,449 million, down from $10,750 million in 2023[27] - Total current liabilities as of December 31, 2024, were $884 million, a decrease from $901 million in 2023[29] Impairment and Losses - The company reported a loss on impairment of licenses amounting to $136 million for the year ended December 31, 2024[25] - The company reported a loss on impairment of licenses amounting to $136 million for the year ended December 31, 2024[37] Shareholder Returns - UScellular repurchased 939,999 common shares for $55 million during 2024, reflecting a commitment to returning value to shareholders[13] Future Outlook - UScellular did not provide financial guidance for 2025 due to the pending transaction with T-Mobile[11] - The company is in the process of closing transactions to sell its wireless operations and select spectrum assets to T-Mobile, expected to finalize in mid-2025[9]

Core Insights - UScellular reported total operating revenues of $970 million for Q4 2024, a decrease of 3% from $1,000 million in Q4 2023 [1][20] - The net income attributable to UScellular shareholders for Q4 2024 was $5 million, down from $14 million in Q4 2023, resulting in diluted earnings per share of $0.05 compared to $0.16 in the prior year [1][28] - For the full year 2024, total operating revenues were $3,770 million, a decline of 3% from $3,906 million in 2023, with a net loss of $39 million compared to a profit of $54 million in 2023 [2][28] Financial Performance - Operating revenues for Q4 2024 included service revenues of $742 million and equipment sales of $228 million, reflecting a 2% and 7% decrease respectively compared to Q4 2023 [20][24] - Operating expenses remained stable at $979 million for Q4 2024, with a notable loss on impairment of licenses recorded at $136 million for the full year [20][26] - Adjusted EBITDA for Q4 2024 was $208 million, down 11% from $233 million in Q4 2023, while full-year adjusted EBITDA increased by 3% to $1,018 million [24][29] Subscriber Metrics - UScellular experienced a net loss of 14,000 postpaid subscribers in Q4 2024, although gross additions improved to 140,000 [16][11] - The churn rate for postpaid subscribers was 1.08% in Q4 2024, slightly improved from 1.22% in Q4 2023 [16][11] - Fixed wireless customers grew by 27% year-over-year, indicating a positive trend in this segment despite overall subscriber losses [11] Strategic Transactions - UScellular announced a significant transaction to sell its wireless operations and select spectrum assets to T-Mobile, expected to close in mid-2025, pending regulatory approval [6][8] - Additional spectrum sales agreements were made with Verizon and AT&T, further indicating a strategic shift in asset management [7][8] - The company did not provide financial guidance for 2025 due to the pending transaction with T-Mobile [8] Shareholder Actions - In 2024, UScellular repurchased 939,999 common shares for $55 million, reflecting a commitment to enhancing shareholder value [9][5] - The company emphasized maintaining strong financial discipline, resulting in solid growth in profitability and free cash flow [5][11]

Core Insights - U.S. Cellular is implementing strategies to enhance subscriber growth and manage churn effectively, focusing on superior network quality and national coverage [1] - The company is expanding its offerings with flat rate plans and unlimited plans to improve average revenue per user while navigating competitive pressures in the U.S. wireless market [1] - The fixed wireless segment is experiencing significant growth, with a 32% year-over-year increase in customers, reaching 140,000 [2] Financial Performance - U.S. Cellular's shares have increased by 54.6% over the past year, outperforming the industry growth of 27.7% [6] - The company has achieved an earnings surprise of 40.45% on average over the last four quarters, indicating strong financial performance [13] - The quick ratio improved to 1.39 in 2024 from 1.33 in 2023, and the current ratio increased to 1.57 from 1.55, suggesting better liquidity management [12] Strategic Initiatives - U.S. Cellular is actively reducing its debt and improving liquidity through monetization of spectrum holdings, including a $4.4 billion agreement with T-Mobile for wireless operations and spectrum assets [11] - The company has also entered into a $1 billion agreement with Verizon Communications to divest a portion of its spectrum holdings [11] - Management's focus on cost optimization is contributing to profitability and positioning the company for future growth [6] Market Position - U.S. Cellular's tower rental business is benefiting from geographical diversity and a balanced presence across major wireless carriers, enhancing its revenue streams [2] - The company is optimistic about the potential of millimeter wave spectrum for fixed wireless access, particularly for rural customers [1]

Core Viewpoint - United States Cellular Corporation has experienced a significant share price increase of nearly 53% in 2024 despite losing approximately 96,000 postpaid device subscriptions [1] Spectrum Strategy - United States Cellular has adopted a unique strategy involving the sale of spectrum assets to major telecom companies, which has contributed to the increase in share value [2][3] - The company has sold billions in spectrum assets to T-Mobile, Verizon, and AT&T, with a notable deal involving T-Mobile expected to close in mid-2025 pending regulatory approval [3][5] Spectrum Asset Value - Spectrum is a finite resource, and the demand for it has led to high auction prices, with over $200 billion in spectrum assets auctioned in the U.S. from 2020 to 2022 [4] - United States Cellular has approximately 30% of its spectrum assets remaining after the T-Mobile deal, with 86% of these being C-Band spectrum, which is considered highly valuable for 5G services [5][6] C-Band Spectrum Pricing - The average price of C-Band spectrum has dropped significantly from a record $0.876/MHz/pop in 2021 to $0.106/MHz/pop, representing an 88% decrease [7] - Based on current prices, the company's C-Band spectrum is valued at around $174 million, down from an estimated $1.4 billion at its peak [7] Future Catalysts - Analysts forecast a 12-month stock price target of $80.00 for United States Cellular, indicating a potential upside of 29.16% [8] - The company may also consider selling its tower assets, which are valued in the billions, as a potential catalyst for share price increases [9] Market Context - Merger enforcement actions have decreased under the Biden Administration, which may impact the regulatory landscape for United States Cellular's deals [9] - Despite a "Buy" rating from analysts, other stocks are currently viewed as better investment opportunities [10][11]