USM Earnings Prediction
The chart below shows how USM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, USM sees a -1.81% change in stock price 10 days leading up to the earnings, and a +1.48% change 10 days following the report. On the earnings day itself, the stock moves by +6.74%. This data can give you a slight idea of what to expect for the next quarter's release.
USM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
922.00M
-4.26%
-0.54%
Gross Margin
40.35%
-0.62%
0.82%
Operating Margin
5.21%
-13.46%
-1.51%
Net Margin
-8.46%
-453.97%
-536.08%
EPS
-0.92
-440.74%
-584.21%
No Data Available
USM Earnings Analysis
United States Cellular Corporation Corporation (USM.N) Earnings Conference Call
Positive
Profitability Outlook Improvement: 1. Increased Profitability Outlook: UScellular raised its profitability outlook for adjusted EBITDA and adjusted OIBDA, reflecting strong operational performance and effective cost management.
Cash Flow Improvement: 2. Strong Cash Flow Generation: The company generated free cash flow of $331 million year-to-date through September 30th, a $94 million increase over the prior year, allowing for debt repayment and improved leverage ratios.
Spectrum License Sale Success: 3. Successful Spectrum Monetization: UScellular entered into agreements to sell certain spectrum licenses for aggregate proceeds of over $1 billion, significantly exceeding their book value, demonstrating strong demand for these assets.
Subscriber Retention Improvement: 4. Improved Subscriber Metrics: Retail net losses improved by 20,000 subscribers year-over-year, and postpaid handset net losses decreased by 10,000 year-over-year, indicating a positive trend in customer retention and acquisition.
Fiber Broadband Milestone: 5. Fiber Expansion Progress: TDS Telecom achieved a milestone with 50% of service addresses now served by fiber, contributing to a 21% increase in adjusted EBITDA for the quarter, showcasing the effectiveness of their fiber broadband strategy.
Negative
License Impairment Loss: 1. Loss on Impairment of Licenses: UScellular recorded a loss on impairment of licenses amounting to $136 million, significantly impacting financial results for Q3 2024.
Service Revenue Decline: 2. Decline in Service Revenues: Service revenues decreased by 2% due to a decline in the average subscriber base, despite a slight increase in postpaid ARPU.
Tower Revenue Growth Slowdown: 3. Slowdown in Tower Revenue Growth: Tower revenue growth slowed, with only a 1% increase in third-party revenue, attributed to reduced co-location growth and defections.
Projected Cash Tax Burden: 4. Increased Cash Taxes: Estimated cash taxes related to spectrum transactions are projected to be between $200 million to $250 million for UScellular, adding financial strain.
Broadband Losses in Cable Markets: 5. Net Broadband Losses in Cable Markets: TDS Telecom experienced net broadband losses in cable markets, primarily due to increased competition from fiber overbuilders.
USM FAQs
How does USM typically perform around its earnings report dates?
Is United States Cellular Corporation (USM) Q3 2024 Earnings Call Summary positive or negative?
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USM Earning Call Sentiment
United States Cellular Corporation (USM) Q3 2024 Earnings Call Transcript
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00:00
00:00
USM.N
-2.43%Positive
The earnings call summary reveals a mixed but overall positive sentiment. Financial performance shows a slight decline in service revenue but improvements in EBITDA, OIBDA, and free cash flow, indicating strong cost management. The shareholder return plan with spectrum sales to Verizon and T-Mobile is a significant positive catalyst. The Q&A section suggests some uncertainties, but management's confidence in debt repayment and strategic use of proceeds is reassuring. Given the market cap, the stock is likely to experience a positive movement of 2% to 8% over the next two weeks.
