Telephone and Data Systems Inc.
) reported second-quarter 2014 loss of 20 cents per share, wider
than the Zacks Consensus Estimate of a loss of 14 cents. The bottom
line also deteriorated considerably from earnings of $1.44 per
share reported in the year-ago quarter.
Telephone And Data Systems, Inc - Earnings
Surprise | FindTheBest
Revenues inched up 1% year over year to $1,236.4 million in the
reported quarter and surpassed our projection of $1,200 million.
The company reported operating loss of $49.1 million compared with
$282.2 million in the year-ago quarter.
United States Cellular Corp. (
The company's wireless division U.S. Cellular reported
second-quarter 2014 loss per share of 22 cents, wider than the
Zacks Consensus Estimate of a loss of 15 cents. The bottom line
also showed a marked deterioration from the year-ago quarter's
earnings of $1.71 per share. Second-quarter revenues of $957.8
million breezed past the Zacks Consensus Estimate of $924.0 million
but decreased 4% from $995.1 million reported in the year-ago
The reported quarter's retail billed ARPU (average revenue per
user) increased to $53.36 from $50.60 in the year-ago quarter.
Post-paid churn decreased to 1.7% from 2% in the second quarter of
2013. Prepaid churn also declined to 6.5% from 6.8% in the year-ago
U.S. Cellular witnessed net subscriber loss of 30,000 retail
customers compared with loss of 127,000 in the year-ago quarter.
The company exited the quarter with a retail customer base of
4,653,000 compared with 4,968,000, a year ago. Post-paid customer
losses totaled 26,000, and prepaid business lost 4,000
TDS Telecom (Wireline)
Revenues from the wireline segment declined 1% year over year to
$180.7 million. Cable operating revenues grossed $22.5 million
while HMS revenues improved 64% to $68 million at the end of the
At the end of the reported quarter, the company had 597,000
wireline residential customers, 365,500 wireline commercial
customers and 150,700 cable connections, bringing the total
subscriber base to 1.1 million. The company added 3,400 wireline
residential and 1,300 cable customers over the last quarter while
Commercial connections witnessed a loss of 4,300 customers.
Telephone and Data Systems exited the second quarter with cash
and cash equivalents of $874.9 million compared with $830.0 million
at the end of 2013. Long-term debt was $1,718.8 million compared
with $1,720.1 million at year-end 2013.
In the second quarter, operating cash flow was $210.7 million as
compared to $275.1 million at the end of the same previous-year
period. Capital expenditure was $150.9 million, while free cash
flow was $44.6 million compared to $67.2 million in the year-ago
The company repurchased 650,628 shares in the second quarter of
2014 for an aggregate amount of $17.3 million.
For fiscal 2014, TDS Telecom continues to expect total operating
revenue of $1,050-$1,100 million. Adjusted income before income tax
is estimated in the range of $260-$290 million while capital
expenditure is forecasted around $200 million.
For 2014, U.S. Cellular expects capital spending of
approximately $640 million.
TDS Telecom currently carries a Zacks Rank #3 (Hold). Access
line losses due to wireless substitution and other alternative
services remain detrimental to growth. Further, higher churn in the
post-paid segment, increased equipment subsidies and investments in
network upgrade are likely to continue affecting results.
Better-ranked stocks like Shenandoah Telecommunications Co.(
) with a Zacks Rank #1 (Strong Buy) andCincinnati Bell Inc. (
) with a Zacks Rank #2 (Buy) are worth considering within this
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CINCINNATI BELL (CBB): Free Stock Analysis
TELEPHONE &DATA (TDS): Free Stock Analysis
US CELLULAR (USM): Free Stock Analysis Report
SHENANDOAH TELE (SHEN): Free Stock Analysis
To read this article on Zacks.com click here.