Telephone And Data Systems, Inc. (TDS)

Telephone and Data Systems, Inc. (TDS) declined by 23.86% due to its quarterly earnings report. Despite reporting a narrower loss of $0.11 per share compared to the Zacks Consensus Estimate of a loss of $0.17, the stock saw a sharp decrease in value.

• Earnings Surprise and Revenue Performance: The quarterly report represented an earnings surprise of 35.29%, reflecting a positive outcome compared to analyst expectations. However, TDS posted revenues of $1.31 billion for the quarter ended December 2023, which exceeded the Zacks Consensus Estimate by 2.23%. Despite this, the company's revenue performance has been inconsistent over the last four quarters.
• Concerns Over Future Earnings Potential: While TDS managed to surpass earnings estimates in this quarter, it marks the second consecutive quarter where the company failed to meet expectations. This raised concerns among investors about the company's future earnings potential and its ability to sustain profitability.

Shares of Telephone & Data Systems (TDS) declined 11.05% to $13.20 after the company issued a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.04.

https://finance.yahoo.com/news/telephone-data-systems-tds-reports-124505048.html

TDS's stock fell because the strategy contradicts management's earnings guidance, and the financials don't support the dividend.

https://seekingalpha.com/article/4600411-telephone-and-data-systems-high-dividend-risk