Telecommunications services provider Telephone and Data Systems (NYSE: TDS) will be reporting earnings this Friday morning. Here’s what investors should know.
Telephone and Data Systems beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.19 billion, down 4.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Telephone and Data Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Telephone and Data Systems’s revenue to decline 5.4% year on year to $1.16 billion, a further deceleration from the 4.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Telephone and Data Systems has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by -0.3% on average.
Looking at Telephone and Data Systems’s peers in the telecommunication services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lumen’s revenues decreased 4.2% year on year, beating analysts’ expectations by 0.9%, and Iridium reported revenues up 6.7%, topping estimates by 1.7%. Lumen’s stock price was unchanged after the resultswhile Iridium was down 8%.
Read our full analysis of Lumen’s results here and Iridium’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the telecommunication services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Telephone and Data Systems is down 2.9% during the same time and is heading into earnings with an average analyst price target of $52 (compared to the current share price of $38.03).
P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
