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TDS (TDS) Down 1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Telephone & Data Systems (TDS - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is TDS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TDS Q2 Earnings Fall Short of Estimates, Revenues Decline Y/Y
Telephone and Data Systems posted mixed second-quarter 2025 results, with top line beating the Zacks Consensus Estimate but the bottom line missing the same. TDS reported a revenue decline year over year, owing to demand softness across several verticals. However, growth in residential broadband connections and tower business partially cushioned the top line.
Net Income of TDS
The company reported a net loss of $5 million or a loss of 5 cents per share compared with a net loss of $14 million or 13 cents in the year-earlier quarter. The narrower loss was due to declining operating expenses year over year. The bottom line missed the Zacks Consensus Estimate by 4 cents.
Revenues of TDS
Net sales were $1.18 billion, down from $1.23 billion reported in the year-ago quarter. Declining revenues in all segments affected the top line. However, the figure beat the Zacks Consensus Estimate by $18 million.
U.S. Cellular changed its name to Array Digital Infrastructure in July 2025.
Revenues from Array were $916 million, down 1% year over year. A reduction in postpaid retail and prepaid connections impeded the top line. However, growth in tower revenues is a positive factor. Net sales beat our revenue estimate of $893.7 million. Total operating expenses were $881 million, down from $891 million in the prior-year quarter.
The company reported an operating income of $35 million compared with $36 million registered in the year-ago quarter. Postpaid average revenues per user (ARPU) rose to $51.91 from $51.45. Postpaid average revenues per account increased to $131.89 from $130.41 in the year-ago quarter. Prepaid ARPU was $31.72, down from $32.37 in the prior-year quarter.
TDS Telecom contributed $265 million to revenues compared with $266 million reported in the prior-year quarter. The top line beat our estimate of $249.2 million. Total residential connections were 924,500, down from 950,400 in the year-earlier quarter. Residential revenues per connection were $65.85, up from $65.26 in the prior-year quarter.
Total operating expenses were $251 million, up 1% year over year. Around 26% of customers opted for 1 Gigabit+ speed compared with the prior-year quarter’s 19%. About 13% of users have chosen a 600 Mbps speed compared with 10% in the year-earlier quarter. Its broadband expansion rose to 141,800 from 107,800 a year ago. Total connections were 1,108,000 compared with 1,152,200 in the year-ago quarter.
Other Details of TDS
Total operating expenses were $1.14 billion, down 4% from the prior-year quarter’s levels. The company reported an operating income of $40 million compared with $39 million
Adjusted EBITDA in TDS Telecom was $89 million, down 3% year over year. Adjusted EBITDA for Array Digital declined to $254 million compared with the prior-year quarter’s figure of $268 million.
TDS’ Cash Flow & Liquidity
In the second quarter, Telephone and Data Systems generated $422 million of net cash from operating activities compared with $403 million in the prior-year quarter. As of June 30, 2025, the company had $540 million in cash and cash equivalents, with $4.03 billion of long-term debt.
TDS’ Outlook
For 2025, management expects total operating revenues at TDS Telecom in the range of $1.03-$1.07 billion. Adjusted EBITDA is estimated in the band of $320-$360 million. Adjusted OIBDA (non-GAAP) is expected to be $310-$350 million. Capital expenditures are expected in the range of $375-$425 million. Array Digital has not provided an outlook for 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -10% due to these changes.
VGM Scores
Currently, TDS has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TDS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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TDS (TDS) Down 1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Telephone & Data Systems (TDS - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is TDS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TDS Q2 Earnings Fall Short of Estimates, Revenues Decline Y/Y
Telephone and Data Systems posted mixed second-quarter 2025 results, with top line beating the Zacks Consensus Estimate but the bottom line missing the same. TDS reported a revenue decline year over year, owing to demand softness across several verticals. However, growth in residential broadband connections and tower business partially cushioned the top line.
Net Income of TDS
The company reported a net loss of $5 million or a loss of 5 cents per share compared with a net loss of $14 million or 13 cents in the year-earlier quarter. The narrower loss was due to declining operating expenses year over year. The bottom line missed the Zacks Consensus Estimate by 4 cents.
Revenues of TDS
Net sales were $1.18 billion, down from $1.23 billion reported in the year-ago quarter. Declining revenues in all segments affected the top line. However, the figure beat the Zacks Consensus Estimate by $18 million.
U.S. Cellular changed its name to Array Digital Infrastructure in July 2025.
Revenues from Array were $916 million, down 1% year over year. A reduction in postpaid retail and prepaid connections impeded the top line. However, growth in tower revenues is a positive factor. Net sales beat our revenue estimate of $893.7 million. Total operating expenses were $881 million, down from $891 million in the prior-year quarter.
The company reported an operating income of $35 million compared with $36 million registered in the year-ago quarter. Postpaid average revenues per user (ARPU) rose to $51.91 from $51.45. Postpaid average revenues per account increased to $131.89 from $130.41 in the year-ago quarter. Prepaid ARPU was $31.72, down from $32.37 in the prior-year quarter.
TDS Telecom contributed $265 million to revenues compared with $266 million reported in the prior-year quarter. The top line beat our estimate of $249.2 million. Total residential connections were 924,500, down from 950,400 in the year-earlier quarter. Residential revenues per connection were $65.85, up from $65.26 in the prior-year quarter.
Total operating expenses were $251 million, up 1% year over year. Around 26% of customers opted for 1 Gigabit+ speed compared with the prior-year quarter’s 19%. About 13% of users have chosen a 600 Mbps speed compared with 10% in the year-earlier quarter. Its broadband expansion rose to 141,800 from 107,800 a year ago. Total connections were 1,108,000 compared with 1,152,200 in the year-ago quarter.
Other Details of TDS
Total operating expenses were $1.14 billion, down 4% from the prior-year quarter’s levels. The company reported an operating income of $40 million compared with $39 million
Adjusted EBITDA in TDS Telecom was $89 million, down 3% year over year. Adjusted EBITDA for Array Digital declined to $254 million compared with the prior-year quarter’s figure of $268 million.
TDS’ Cash Flow & Liquidity
In the second quarter, Telephone and Data Systems generated $422 million of net cash from operating activities compared with $403 million in the prior-year quarter. As of June 30, 2025, the company had $540 million in cash and cash equivalents, with $4.03 billion of long-term debt.
TDS’ Outlook
For 2025, management expects total operating revenues at TDS Telecom in the range of $1.03-$1.07 billion. Adjusted EBITDA is estimated in the band of $320-$360 million. Adjusted OIBDA (non-GAAP) is expected to be $310-$350 million. Capital expenditures are expected in the range of $375-$425 million. Array Digital has not provided an outlook for 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -10% due to these changes.
VGM Scores
Currently, TDS has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TDS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.