Telephone & Data Systems Q4 EPS $0.32 Beats, Revenue Tops by $10.7M
Telephone & Data Systems posted Q4 EPS of $0.32, beating the $0.09 estimate, and revenues of $330.7M versus $320M consensus, prompting a 5.18% pre-market rally. Full-year profit swung to $48.2M from a $141.4M loss on $1.23B revenue, driven by a $1.018B spectrum sale, $10.25 dividend and 140,000 fiber addresses.
1. Q4 Earnings Beat Expectations
Telephone & Data Systems reported Q4 EPS of $0.32, surpassing the $0.09 estimate, and generated $330.7M in revenue, up from $295.3M a year earlier. The pre-market share price rose 5.18% following the announcement.
2. Full-Year Financial Turnaround
In fiscal 2025, TDS achieved operating revenue of $1.23B, down from $1.30B, but swung net income to a $48.2M profit versus a $141.4M loss. Cash flows were bolstered by a $1.018B spectrum sale to AT&T, a $10.25 per-share dividend and a $67.4M share buyback.
3. Fiber Expansion and Strategic Moves
The company completed the sale of its wireless business, launched its new tower unit Array and deployed 140,000 fiber addresses, ending the year with 1.06M marketable fiber service addresses and raising its long-term target to 2.1M addresses.
4. 2026 Outlook and Guidance
TDS forecasts fiscal 2026 revenue of $1.015B to $1.055B, below the $1.281B consensus, reflecting continued reinvestment in fiber network expansion and strategic repositioning.