Telephone and Data Systems Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy TDS?
Source: seekingalpha
- Strong Earnings: Telephone and Data Systems reported a Q4 GAAP EPS of $0.32, beating expectations by $0.23, indicating a significant improvement in profitability.
- Revenue Growth: The company achieved Q4 revenue of $330.7 million, reflecting a 12% year-over-year increase and exceeding market expectations by $11.42 million, showcasing robust business momentum.
- 2025 Performance Impact: Estimated total revenues for 2025 are projected between $1.015 billion and $1.055 billion, with actual results at $1.038 billion, although market consensus was $1.28 billion, indicating cautious market sentiment regarding future growth.
- Capital Expenditure Overview: Projected capital expenditures for 2025 are between $550 million and $600 million, with actual spending at $406 million, suggesting a conservative investment strategy that may impact future growth potential.
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Analyst Views on TDS
Wall Street analysts forecast TDS stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 45.540
Low
51.00
Averages
51.00
High
51.00
Current: 45.540
Low
51.00
Averages
51.00
High
51.00
About TDS
Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company provides broadband, video and voice through its TDS Telecom. The Company’s segment includes Array, TDS Telecom, and Other. Its Array business connects America through digital infrastructure by leasing tower space to tenants and providing ancillary services. It also holds non-controlling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Its TDS Telecom business provides residential Internet, video, mobile, and voice services primarily through monthly subscription arrangements. Its Other business segment includes its wholly owned subsidiary Suttle-Straus, Inc. The Company, through its subsidiary TDS Telecommunications LLC, delivers high-speed Internet, television entertainment, and phone services to a mix of small to mid-sized urban, suburban and rural communities throughout the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Telephone and Data Systems Set to Release Q4 Earnings on February 20
- Earnings Announcement: Telephone and Data Systems (TDS) is scheduled to announce its Q4 earnings on February 20 before market open, with a consensus EPS estimate of $0.09, reflecting a significant year-over-year increase of 200%.
- Revenue Decline: Despite the strong EPS outlook, the consensus revenue estimate stands at $319.28 million, indicating a substantial year-over-year decline of 74.3%, highlighting significant challenges in revenue generation for the company.
- Historical Performance Review: Over the past year, TDS has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating uncertainty in the company's profitability and revenue growth trajectory.
- Market Reaction Analysis: While the upcoming earnings report suggests a strong EPS growth expectation, the drastic revenue decline may negatively impact investor confidence, necessitating close attention to market reactions following the earnings release.
See More
TDS Telecom Raises Marketable Fiber Service Goal to 2.1 Million Addresses
- Fiber Service Goal Increase: TDS Telecom has raised its long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses, demonstrating the company's commitment to expanding its fiber market presence, which is expected to drive revenue growth further.
- Significant Financial Improvement: In Q4 2025, TDS Telecom reported total operating revenues of $330.7 million, a 12% increase year-over-year, with net income reaching $37.2 million, indicating a marked improvement in profitability post-transformation.
- Enhanced Shareholder Returns: TDS repurchased 1,765,863 common shares for $67.4 million in Q4 2025 and paid a special dividend of $10.25 per share on February 2, 2026, boosting shareholder confidence and enhancing shareholder value.
- Ongoing Strategic Investments: TDS plans to continue investing in the expansion of its fiber business and support co-location and profitability initiatives at Array in 2026, which is expected to further solidify its market position and achieve sustainable growth.
See More
Telephone and Data Systems Declares Quarterly Dividend
- Quarterly Dividend Announcement: Telephone and Data Systems (TDS) declares a quarterly dividend of $0.04 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows.
- Dividend Yield: The forward yield of 0.35% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend is payable on March 31, with a record date of March 16 and an ex-dividend date also on March 16, ensuring shareholders receive their earnings promptly.
- Investor Focus: TDS's dividend policy, combined with its pending spectrum sales, may further drive the company's deleveraging efforts, enhancing its financial health and positioning for future growth.
See More
Telephone and Data Systems Q4 Earnings Exceed Expectations
- Strong Earnings: Telephone and Data Systems reported a Q4 GAAP EPS of $0.32, beating expectations by $0.23, indicating a significant improvement in profitability.
- Revenue Growth: The company achieved Q4 revenue of $330.7 million, reflecting a 12% year-over-year increase and exceeding market expectations by $11.42 million, showcasing robust business momentum.
- 2025 Performance Impact: Estimated total revenues for 2025 are projected between $1.015 billion and $1.055 billion, with actual results at $1.038 billion, although market consensus was $1.28 billion, indicating cautious market sentiment regarding future growth.
- Capital Expenditure Overview: Projected capital expenditures for 2025 are between $550 million and $600 million, with actual spending at $406 million, suggesting a conservative investment strategy that may impact future growth potential.
See More
TDS Telecom Raises Fiber Service Goal to 2.1 Million Addresses
- Financial Performance Boost: TDS Telecom reported operating revenues of $330.7 million for Q4 2025, a 12% increase year-over-year, indicating strong performance during its transformation and enhancing its competitive position in the market.
- Significant Net Income Improvement: The company achieved a net income of $48.2 million in 2025, a substantial rebound from a loss of $141.4 million in 2024, demonstrating successful financial recovery through the sale of its wireless business and new business models.
- Fiber Service Expansion Plan: TDS Telecom has raised its long-term marketable fiber service goal to 2.1 million addresses, aiming to solidify its position in the rapidly growing fiber market through increased investment and market expansion.
- 2026 Strategic Outlook: The company anticipates 2026 operating revenues between $1.015 billion and $1.055 billion, with capital expenditures projected at $550 million to $600 million, reflecting confidence in future growth and a commitment to ongoing investment.
See More
Telephone and Data Systems Declares Q1 2026 Dividends
- Dividend Declaration: The board of Telephone and Data Systems has announced dividends for Q1 2026 on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares, reflecting the company's commitment to shareholder returns.
- Ticker Symbols: The ticker for Common Shares is 'TDS', for Series UU depositary shares is 'TDSPrU', and for Series VV depositary shares is 'TDSPrV', providing clear identifiers for investors to facilitate trading and investment decisions.
- Company Background: Founded in 1969, Telephone and Data Systems focuses on broadband services and wireless infrastructure through its subsidiaries TDS Telecom and Array Digital Infrastructure, Inc., demonstrating its solid position in the telecommunications industry.
- Investor Information: The company offers comprehensive financial information, including earnings releases, quarterly and annual filings, and shareholder information, further enhancing transparency and investor confidence.
See More
Telephone and Data Systems Set to Release Q4 Earnings on February 20
- Earnings Announcement: Telephone and Data Systems (TDS) is scheduled to announce its Q4 earnings on February 20 before market open, with a consensus EPS estimate of $0.09, reflecting a significant year-over-year increase of 200%.
- Revenue Decline: Despite the strong EPS outlook, the consensus revenue estimate stands at $319.28 million, indicating a substantial year-over-year decline of 74.3%, highlighting significant challenges in revenue generation for the company.
- Historical Performance Review: Over the past year, TDS has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating uncertainty in the company's profitability and revenue growth trajectory.
- Market Reaction Analysis: While the upcoming earnings report suggests a strong EPS growth expectation, the drastic revenue decline may negatively impact investor confidence, necessitating close attention to market reactions following the earnings release.
See More
TDS Telecom Raises Marketable Fiber Service Goal to 2.1 Million Addresses
- Fiber Service Goal Increase: TDS Telecom has raised its long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses, demonstrating the company's commitment to expanding its fiber market presence, which is expected to drive revenue growth further.
- Significant Financial Improvement: In Q4 2025, TDS Telecom reported total operating revenues of $330.7 million, a 12% increase year-over-year, with net income reaching $37.2 million, indicating a marked improvement in profitability post-transformation.
- Enhanced Shareholder Returns: TDS repurchased 1,765,863 common shares for $67.4 million in Q4 2025 and paid a special dividend of $10.25 per share on February 2, 2026, boosting shareholder confidence and enhancing shareholder value.
- Ongoing Strategic Investments: TDS plans to continue investing in the expansion of its fiber business and support co-location and profitability initiatives at Array in 2026, which is expected to further solidify its market position and achieve sustainable growth.
See More
Telephone and Data Systems Declares Quarterly Dividend
- Quarterly Dividend Announcement: Telephone and Data Systems (TDS) declares a quarterly dividend of $0.04 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows.
- Dividend Yield: The forward yield of 0.35% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend is payable on March 31, with a record date of March 16 and an ex-dividend date also on March 16, ensuring shareholders receive their earnings promptly.
- Investor Focus: TDS's dividend policy, combined with its pending spectrum sales, may further drive the company's deleveraging efforts, enhancing its financial health and positioning for future growth.
See More
Telephone and Data Systems Q4 Earnings Exceed Expectations
- Strong Earnings: Telephone and Data Systems reported a Q4 GAAP EPS of $0.32, beating expectations by $0.23, indicating a significant improvement in profitability.
- Revenue Growth: The company achieved Q4 revenue of $330.7 million, reflecting a 12% year-over-year increase and exceeding market expectations by $11.42 million, showcasing robust business momentum.
- 2025 Performance Impact: Estimated total revenues for 2025 are projected between $1.015 billion and $1.055 billion, with actual results at $1.038 billion, although market consensus was $1.28 billion, indicating cautious market sentiment regarding future growth.
- Capital Expenditure Overview: Projected capital expenditures for 2025 are between $550 million and $600 million, with actual spending at $406 million, suggesting a conservative investment strategy that may impact future growth potential.
See More
TDS Telecom Raises Fiber Service Goal to 2.1 Million Addresses
- Financial Performance Boost: TDS Telecom reported operating revenues of $330.7 million for Q4 2025, a 12% increase year-over-year, indicating strong performance during its transformation and enhancing its competitive position in the market.
- Significant Net Income Improvement: The company achieved a net income of $48.2 million in 2025, a substantial rebound from a loss of $141.4 million in 2024, demonstrating successful financial recovery through the sale of its wireless business and new business models.
- Fiber Service Expansion Plan: TDS Telecom has raised its long-term marketable fiber service goal to 2.1 million addresses, aiming to solidify its position in the rapidly growing fiber market through increased investment and market expansion.
- 2026 Strategic Outlook: The company anticipates 2026 operating revenues between $1.015 billion and $1.055 billion, with capital expenditures projected at $550 million to $600 million, reflecting confidence in future growth and a commitment to ongoing investment.
See More
Telephone and Data Systems Declares Q1 2026 Dividends
- Dividend Declaration: The board of Telephone and Data Systems has announced dividends for Q1 2026 on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares, reflecting the company's commitment to shareholder returns.
- Ticker Symbols: The ticker for Common Shares is 'TDS', for Series UU depositary shares is 'TDSPrU', and for Series VV depositary shares is 'TDSPrV', providing clear identifiers for investors to facilitate trading and investment decisions.
- Company Background: Founded in 1969, Telephone and Data Systems focuses on broadband services and wireless infrastructure through its subsidiaries TDS Telecom and Array Digital Infrastructure, Inc., demonstrating its solid position in the telecommunications industry.
- Investor Information: The company offers comprehensive financial information, including earnings releases, quarterly and annual filings, and shareholder information, further enhancing transparency and investor confidence.
See More
