CHICAGO, April 25, 2025 /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) and United States Cellular Corporation (NYSE: USM) will be webcasting their first quarter operating results conference call on May 2, 2025, at 9:00 a.m. Central Time. The companies will release their financial results on May 2, 2025. To listen to the webcast, please visit the events & presentations pages of investors.tdsinc.com or investors.uscellular.com. The presentations will be webcast both live and on-demand. It is rec ...

Company Overview - United States Cellular (USM) shares increased by 5.3% to close at $65.94, with trading volume significantly higher than usual, contrasting with a 3% loss over the past four weeks [1] - The company is focused on accelerating subscriber additions and improving churn management, aiming to provide superior wireless experiences through enhanced network quality and national coverage [2] Financial Performance - U.S. Cellular is expected to report quarterly earnings of $0.37 per share, reflecting an 85% year-over-year increase, while revenues are projected at $925.42 million, a decrease of 2.6% from the previous year [3] - The consensus EPS estimate for U.S. Cellular has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] Industry Context - U.S. Cellular operates within the Zacks Wireless National industry, where competitive pricing strategies, such as flat rate plans, are gaining traction among postpaid customers [2] - ATN International, another player in the same industry, has seen a significant EPS estimate change of -64.5% over the past month, with a current Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - Shares of United States Cellular Corporation (USM) have increased by 91.7% over the past year, driven by strong performance in the wireless sector and rising earnings estimates for the current and next fiscal years, indicating significant growth potential [1] Group 1: Growth Drivers - U.S. Cellular is implementing strategies to boost subscriber growth and manage churn effectively, focusing on providing superior network quality and national coverage [2][8] - The company is expanding its market presence and adopting unlimited plans to increase average revenue per user, while also progressing with 5G deployment and network modernization [2][9] - Fixed wireless business is experiencing solid user engagement, with a 27% year-over-year growth in fixed wireless customers, reaching 145,000 [3] Group 2: Financial Strategies - U.S. Cellular is actively working to reduce its debt and improve liquidity by monetizing its spectrum holdings, including a $4.4 billion agreement with T-Mobile US Inc. to sell most of its wireless operations and 30% of its spectrum assets [4][5] - The divestiture will enhance liquidity and reduce debt, while also providing a steady revenue stream from T-Mobile as an anchor tenant on over 2,015 towers for 15 years [5] Group 3: Operational Initiatives - The company is focused on enhancing profitability through various initiatives, including a new billing system, continuous rollout of 4G LTE, and expansion of 5G device offerings [10] - U.S. Cellular aims to improve customer service and capitalize on business opportunities related to 5G and IoT, while managing data delivery costs effectively [10]

Core Viewpoint - United States Cellular (USM) shares have increased by 3.5% recently, with analysts suggesting a potential upside of 26% based on a mean price target of $85.33 [1][9] Price Targets - The mean estimate for USM's price target is $85.33, with a standard deviation of $2.52, indicating a relatively tight clustering of estimates [2][7] - The lowest price target is $83, suggesting a 22.6% increase, while the highest target is $88, indicating a potential 30% rise [2] Analyst Sentiment - Analysts show strong agreement in revising earnings estimates upward, which correlates with positive stock price movements [4][9] - Over the past 30 days, the Zacks Consensus Estimate for USM's current year earnings has increased by 9.4%, with two estimates moving higher and no negative revisions [10] Zacks Rank - 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, indicating strong potential for upside [11] Caution on Price Targets - While price targets are a common tool for investors, they can often mislead, and reliance solely on them may not yield favorable returns [5][8]

Core Viewpoint - United States Cellular (USM) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise their earnings estimates [1][2] Earnings Estimate Revisions - Analysts' optimism regarding U.S. Cellular's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2] - The earnings estimate for the current quarter is $0.37 per share, reflecting an increase of +85% from the previous year [4] - Over the last 30 days, the Zacks Consensus Estimate for U.S. Cellular has risen by 17.74%, with two estimates moving higher and no negative revisions [4] - For the full year, the expected earnings are $1.16 per share, indicating a change of +352.17% from the prior year [5] - The consensus estimate for the current year has increased by 9.43%, with two estimates moving higher and no negative revisions [5] Zacks Rank - U.S. Cellular currently holds a Zacks Rank 1 (Strong Buy), indicating promising estimate revisions and a strong potential for outperformance [6] - Stocks with Zacks Rank 1 and 2 have historically outperformed the S&P 500 [6] Stock Performance - U.S. Cellular shares have increased by 5.1% over the past four weeks, suggesting investor confidence in its earnings growth prospects [7]

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 ...