Telephone & Data Systems (TDS) Reports Q2 Loss, Tops Revenue Estimates

Core Insights - Telephone & Data Systems (TDS) reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.16, and an improvement from a loss of $0.17 per share a year ago, resulting in an earnings surprise of 18.75% [1] - The company posted revenues of $1.24 billion for the quarter ended June 2024, slightly surpassing the Zacks Consensus Estimate by 0.02%, but down from $1.27 billion year-over-year [2] - TDS shares have increased approximately 15% year-to-date, outperforming the S&P 500's gain of 14.2% [3] Earnings Outlook - The earnings outlook for TDS is currently favorable, with a consensus EPS estimate of -$0.13 on $1.24 billion in revenues for the upcoming quarter and -$0.33 on $5.01 billion in revenues for the current fiscal year [7] - The company has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Industry Context - TDS operates within the Zacks Wireline - National industry, which is currently ranked in the top 1% of over 250 Zacks industries, suggesting a strong industry performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]