Telephone and Data Systems (NYSE:TDS) Trading 9.7% Higher Following Better-Than-Expected Earnings

Shares of Telephone and Data Systems, Inc. (NYSE:TDS) traded up 9.7% on Monday after the company announced better than expected quarterly earnings. The company traded as high as $15.96 and last traded at $15.75. 319,632 shares were traded during trading, a decline of 66% from the average session volume of 944,736 shares. The stock had previously closed at $14.36.

The Wireless communications provider reported $0.10 EPS for the quarter, topping the consensus estimate of ($0.05) by $0.15. Telephone and Data Systems had a negative net margin of 9.36% and a positive return on equity of 0.62%. The business had revenue of $1.26 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the previous year, the company earned ($0.08) EPS. The business’s quarterly revenue was down 3.1% compared to the same quarter last year.

Telephone and Data Systems Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Stockholders of record on Friday, March 15th were issued a $0.19 dividend. The ex-dividend date of this dividend was Thursday, March 14th. This is an increase from Telephone and Data Systems’s previous quarterly dividend of $0.19. This represents a $0.76 dividend on an annualized basis and a dividend yield of 4.83%. Telephone and Data Systems’s payout ratio is -15.61%.

Wall Street Analysts Forecast Growth

Separately, StockNews.com downgraded shares of Telephone and Data Systems from a “hold” rating to a “sell” rating in a report on Tuesday, March 26th.

Institutional Investors Weigh In On Telephone and Data Systems

Several hedge funds have recently modified their holdings of TDS. Principal Securities Inc. purchased a new stake in shares of Telephone and Data Systems in the 4th quarter worth approximately $25,000. Anchor Investment Management LLC acquired a new position in Telephone and Data Systems during the 4th quarter valued at approximately $46,000. Quarry LP acquired a new position in Telephone and Data Systems during the 4th quarter valued at approximately $60,000. GAMMA Investing LLC acquired a new position in Telephone and Data Systems during the 4th quarter valued at approximately $93,000. Finally, Quadrant Capital Group LLC increased its stake in shares of Telephone and Data Systems by 14.0% in the fourth quarter. Quadrant Capital Group LLC now owns 5,062 shares of the Wireless communications provider’s stock worth $93,000 after acquiring an additional 622 shares during the period. Hedge funds and other institutional investors own 80.00% of the company’s stock.

Telephone and Data Systems Price Performance

The stock has a market cap of $1.78 billion, a price-to-earnings ratio of -3.19 and a beta of 0.81. The stock’s 50 day moving average price is $15.61 and its two-hundred day moving average price is $17.38. The company has a quick ratio of 1.40, a current ratio of 1.58 and a debt-to-equity ratio of 0.84.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.