We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Telephone and Data Systems' (TDS) Q4 Earnings Beat Estimates
Read MoreHide Full Article
Telephone and Data Systems, Inc. (TDS - Free Report) reported healthy fourth-quarter 2021 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
The TDS family of companies continues to execute on its strategic priorities. U.S. Cellular maintained cost discipline and generated positive momentum in the growth areas of its business. These include Business and Government, Prepaid, Fixed Wireless and tower portfolio. TDS Telecom continued to transform into a leading broadband provider, upgrading speeds and deploying fiber technology in new markets.
Net Income
Net income in the quarter was $31 million or 11 cents per share compared with $14 million or 12 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 7 cents.
In 2021, net income was $156 million or $1.00 per share compared with $226 million or $1.93 per share in 2020.
Telephone and Data Systems, Inc. Price, Consensus and EPS Surprise
Quarterly total operating revenues inched down 0.3% year over year to $1,372 million. The top line, however, surpassed the consensus estimate of $1,361 million.
In 2021, revenues increased 2% year over year to $5,329 million.
Quarterly Segment Results
U.S. Cellular’s revenues declined 0.5% year over year to $1,068 million due to lower equipment sales. However, the positive impact of postpaid average revenue per user (ARPU) contributed to the growth in retail service revenues. The company’s 5G and network modernization programs are on track while it continues to be optimistic about the performance capabilities of the millimeter-wave spectrum.
Total operating expenses decreased to $1,063 million from $1,069 million. Operating income improved to $5 million from $4 million in the year-ago quarter. Postpaid ARPU improved to $48.62 from $47.51, and average revenue per account grew to $127.14 from $124.87. Prepaid ARPU decreased to $34.53 from $35.15 a year ago.
TDS Telecom’s revenues were $254 million, up 2.4% year over year, driven by growth in broadband connections. The company launched 2Gig broadband speeds in select markets and announced plans to triple the number of fiber service addresses by 2026. In 2022, TDS Telecom will focus on growing its broadband business and aggressively expanding its fiber footprint.
Total operating expenses increased to $231 million from $226 million. Operating income was stable at $23 million. Total connections were 1,199,900 compared with 1,201,100 a year ago. Residential revenue per connection increased to $57.86 from $55.66.
Cash Flow & Liquidity
In 2021, Telephone and Data Systems generated $1,103 million of cash from operating activities compared with $1,532 million in 2020. As of Dec 31, 2021, the company had $367 million in cash and cash equivalents with $2,928 million of long-term debt.
Outlook
Telephone and Data Systems has guided for 2022. It expects total operating revenues at TDS Telecom in the range of $1,010-$1,040 million. Adjusted EBITDA is projected to be $260-$290 million. Adjusted OIBDA is anticipated to be $260-$290 million. Capital expenditures are estimated in the band of $500-$550 million.
At U.S. Cellular, service revenues are expected in the band of $3,100-$3,200 million. The company expects adjusted EBITDA in the range of $925-$1,075 million and adjusted OIBDA within $750-$900 million. Capital expenditures are estimated between $700 million and $800 million.
Zacks Rank & Stocks to Consider
Telephone and Data Systems currently has a Zacks Rank #4 (Sell).
Vocera Communications, Inc. is a better-ranked stock in the telecom space that sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 4.9% over the past 60 days.
Vocera Communications pulled off a trailing four-quarter earnings surprise of 115.4%, on average. The stock has returned 73.7% in the past year.
SeaChange International, Inc. (SEAC - Free Report) carries a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised upward by 10% over the past 60 days.
SeaChange International delivered a trailing four-quarter earnings surprise of 37.2%, on average. The stock has, however, declined 15.5% in the past year.
Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2, is another solid pick for investors. The consensus estimate for current-year earnings has been revised 12.2% upward over the past 60 days.
Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 15.1% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Telephone and Data Systems' (TDS) Q4 Earnings Beat Estimates
Telephone and Data Systems, Inc. (TDS - Free Report) reported healthy fourth-quarter 2021 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
The TDS family of companies continues to execute on its strategic priorities. U.S. Cellular maintained cost discipline and generated positive momentum in the growth areas of its business. These include Business and Government, Prepaid, Fixed Wireless and tower portfolio. TDS Telecom continued to transform into a leading broadband provider, upgrading speeds and deploying fiber technology in new markets.
Net Income
Net income in the quarter was $31 million or 11 cents per share compared with $14 million or 12 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 7 cents.
In 2021, net income was $156 million or $1.00 per share compared with $226 million or $1.93 per share in 2020.
Telephone and Data Systems, Inc. Price, Consensus and EPS Surprise
Telephone and Data Systems, Inc. price-consensus-eps-surprise-chart | Telephone and Data Systems, Inc. Quote
Revenues
Quarterly total operating revenues inched down 0.3% year over year to $1,372 million. The top line, however, surpassed the consensus estimate of $1,361 million.
In 2021, revenues increased 2% year over year to $5,329 million.
Quarterly Segment Results
U.S. Cellular’s revenues declined 0.5% year over year to $1,068 million due to lower equipment sales. However, the positive impact of postpaid average revenue per user (ARPU) contributed to the growth in retail service revenues. The company’s 5G and network modernization programs are on track while it continues to be optimistic about the performance capabilities of the millimeter-wave spectrum.
Total operating expenses decreased to $1,063 million from $1,069 million. Operating income improved to $5 million from $4 million in the year-ago quarter. Postpaid ARPU improved to $48.62 from $47.51, and average revenue per account grew to $127.14 from $124.87. Prepaid ARPU decreased to $34.53 from $35.15 a year ago.
TDS Telecom’s revenues were $254 million, up 2.4% year over year, driven by growth in broadband connections. The company launched 2Gig broadband speeds in select markets and announced plans to triple the number of fiber service addresses by 2026. In 2022, TDS Telecom will focus on growing its broadband business and aggressively expanding its fiber footprint.
Total operating expenses increased to $231 million from $226 million. Operating income was stable at $23 million. Total connections were 1,199,900 compared with 1,201,100 a year ago. Residential revenue per connection increased to $57.86 from $55.66.
Cash Flow & Liquidity
In 2021, Telephone and Data Systems generated $1,103 million of cash from operating activities compared with $1,532 million in 2020. As of Dec 31, 2021, the company had $367 million in cash and cash equivalents with $2,928 million of long-term debt.
Outlook
Telephone and Data Systems has guided for 2022. It expects total operating revenues at TDS Telecom in the range of $1,010-$1,040 million. Adjusted EBITDA is projected to be $260-$290 million. Adjusted OIBDA is anticipated to be $260-$290 million. Capital expenditures are estimated in the band of $500-$550 million.
At U.S. Cellular, service revenues are expected in the band of $3,100-$3,200 million. The company expects adjusted EBITDA in the range of $925-$1,075 million and adjusted OIBDA within $750-$900 million. Capital expenditures are estimated between $700 million and $800 million.
Zacks Rank & Stocks to Consider
Telephone and Data Systems currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vocera Communications, Inc. is a better-ranked stock in the telecom space that sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 4.9% over the past 60 days.
Vocera Communications pulled off a trailing four-quarter earnings surprise of 115.4%, on average. The stock has returned 73.7% in the past year.
SeaChange International, Inc. (SEAC - Free Report) carries a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised upward by 10% over the past 60 days.
SeaChange International delivered a trailing four-quarter earnings surprise of 37.2%, on average. The stock has, however, declined 15.5% in the past year.
Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2, is another solid pick for investors. The consensus estimate for current-year earnings has been revised 12.2% upward over the past 60 days.
Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 15.1% in the past year.