Telephone & Data Systems Inc.
) is slated to report its first-quarter 2014 results on May 2,
before the market opens. The company, which owns the majority of
U.S. Cellular, has failed to beat the Zacks Consensus Estimate in
the past four quarters.
Our proven model does not conclusively show that TDS is likely
to beat earnings because it does not have the right combination
of two key ingredients of a positive surprise prediction and
Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at 0.00% for
TDS currently has a Zacks Rank #3. However, the combination of
TDS's Zacks Rank #3 and +0.00% ESP makes surprise prediction
Factors Influencing Results This Quarter
Within the wireless the company has been facing higher churn,
particularly in the post-paid segment owing to an intensely
competitive environment. Further, the company remains vulnerable
to aggressive pricing by larger rivals as these have greater
financial, technical, marketing and distribution resources.
Higher smartphone subsidies continue to affect its margins.
The company's wireline segment also faces stiff competition
from incumbent local exchange carriers and continues to
experience reduction in access line customers due to wireless
substitution and other alternative services. The carrier's high
margin roaming business also remains challenged owing to lower
voice usage and weak voice and data ARPU. We thus caution
investors against the stock going into the earnings
Other Stocks to Consider
Here are some other companies to consider as our model shows
that these have the right combination of elements to post an
earnings beat this quarter:
Level 3 Communications Inc.
) with earnings ESP of +10.71% and Zacks Rank #1.
) with earnings ESP of +1.47% and Zacks Rank #3.
America Movil S.A.B de CV Inc.
) with earnings ESP of +31.71% and Zacks Rank #3.
AMER MOVIL-ADR (AMX): Free Stock Analysis
BCE INC (BCE): Free Stock Analysis Report
LEVEL 3 COMM (LVLT): Free Stock Analysis
TELEPHONE &DATA (TDS): Free Stock Analysis
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