CHICAGO - Telephone and Data Systems, Inc. (NYSE:TDS) has reported a notable earnings beat for the first quarter of 2024, with an earnings per share (EPS) of $0.10, significantly outperforming analysts' expectations of a $0.12 loss. Meanwhile, revenue was in line with expectations at $1.26 billion for the quarter.
The company's stock was down 4% Friday morning.
For the full year 2024, TDS has provided guidance for revenues ranging from $1.07 billion to $1.1 billion, which falls below the consensus estimate of $5.086 billion. It is important to note that this guidance does not reflect any anticipated costs or results from the strategic alternatives review for UScellular, which remains active and ongoing.
In comparison to the same quarter last year, TDS's total operating revenues showed a slight decrease from $1.303 billion to $1.262 billion. However, the company turned around its net income position, reporting $12 million compared to a loss of $9 million in the first quarter of the previous year. This improvement is attributed to the company's strategic focus on quality networks and disciplined financial management, as highlighted by TDS President and CEO LeRoy T. Carlson, Jr.
Carlson expressed confidence in the company's trajectory, noting strong growth in revenue and profitability, particularly from TDS Telecom's broadband investments. "With steady fiber service address delivery and successful selling activities, TDS Telecom reached a milestone by exceeding 100,000 residential broadband connections in our expansion markets," said Carlson.
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