Latest news with #LaurentTherivel
Yahoo
30-05-2025
- Business
- Yahoo
Q1 Rundown: U.S. Cellular (NYSE:USM) Vs Other Terrestrial Telecommunication Services Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the terrestrial telecommunication services industry, including U.S. Cellular (NYSE:USM) and its peers. Terrestrial telecommunication companies face an uphill battle, as they mostly sell into a deflationary market, where the price of moving a bit tends to decrease over time with better technology. Without dependable volume growth, revenue growth could be challenged. Unfortunately, broadband penetration in their core US market is quite high already. On the other hand, data consumption from streaming entertainment and 5G expansion could provide a floor on growth for the next number of years. As if that wasn't enough to worry about, competition is intense, with larger telecom providers and hyperscalers expanding their own networks. The 4 terrestrial telecommunication services stocks we track reported a slower Q1. As a group, revenues missed analysts' consensus estimates by 1.1%. While some terrestrial telecommunication services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results. Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE:USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services. U.S. Cellular reported revenues of $891 million, down 6.2% year on year. This print fell short of analysts' expectations by 3.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts' EPS estimates. "In the first quarter, we continued to work towards executing on our 2025 priorities which include successfully closing on the previously announced sale of the wireless business, while remaining focused on investing in a strong customer experience and operating our business efficiently," said Laurent Therivel, UScellular President and CEO. U.S. Cellular delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 8.5% since reporting and currently trades at $62.81. Read our full report on U.S. Cellular here, it's free. With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE:LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers. Lumen reported revenues of $3.18 billion, down 3.3% year on year, outperforming analysts' expectations by 1.9%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates. Lumen pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $3.98. Is now the time to buy Lumen? Access our full analysis of the earnings results here, it's free. Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE:TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States. Telephone and Data Systems reported revenues of $1.15 billion, down 8.6% year on year, falling short of analysts' expectations by 2.1%. It was a disappointing quarter as it posted a significant miss of analysts' EPS estimates. Telephone and Data Systems delivered the slowest revenue growth in the group. As expected, the stock is down 6.8% since the results and currently trades at $35.04. Read our full analysis of Telephone and Data Systems's results here. Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ:CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries. Cogent reported revenues of $247 million, down 7.2% year on year. This result missed analysts' expectations by 1%. All in all, it was a slower quarter for the company. The stock is down 10.1% since reporting and currently trades at $47.75. Read our full, actionable report on Cogent here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
UScellular reports first quarter 2025 results
As previously announced, UScellular will hold a teleconference on May 2, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of CHICAGO, May 2, 2025 /PRNewswire/ -- United States Cellular Corporation (NYSE: USM) reported total operating revenues of $891 million for the first quarter of 2025, versus $950 million for the same period one year ago. Service revenues totaled $741 million, versus $754 million for the same period one year ago. Net income attributable to UScellular shareholders and related diluted earnings per share were $18 million and $0.21, respectively, for the first quarter of 2025 compared to $18 million and $0.20, respectively, in the same period one year ago. Recent Highlights* Improved postpaid handset results Postpaid handset gross additions increased; postpaid handset net losses improved Third-party tower rental revenues increased 6% Ongoing 5G mid-band network deployment Providing capacity and enhanced speed for our mobility and fixed wireless customers * Comparisons are 1Q'24 to 1Q'25 unless otherwise noted "In the first quarter, we continued to work towards executing on our 2025 priorities which include successfully closing on the previously announced sale of the wireless business, while remaining focused on investing in a strong customer experience and operating our business efficiently," said Laurent Therivel, UScellular President and CEO. "I am also pleased with the 6% year-over-year growth in third-party tower rental revenues, as the team continues to market our valuable tower portfolio." Announced Transactions and Exploration of Strategic Alternatives for UScellularOn May 24, 2024, Telephone and Data Systems, Inc. (TDS) and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approvals and the satisfaction of customary closing conditions. When the proposed T-Mobile transaction closes, UScellular expects the UScellular Board of Directors to declare the first of potentially several, special dividends to UScellular shareholders. On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses. On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close. Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance. Stock RepurchaseDuring the first quarter of 2025, UScellular repurchased 328,835 of its Common Shares for $21 million. Conference Call InformationUScellular will hold a conference call on May 2, 2025 at 9:00 a.m. Central Time. Access the live call on the Events & Presentations page of or at Access the call by phone at (888)330-2384 conference ID: 1328528. Before the call, certain financial and statistical information to be discussed during the call will be posted to The call will be archived on the Events & Presentations page of About UScellularUnited States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.4 million retail connections in 21 states. The Chicago-based company had 4,100 full- and part-time associates as of March 31, 2025. At the end of the first quarter of 2025, Telephone and Data Systems, Inc. owned approximately 83 percent of UScellular. For more information about UScellular, visit Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations, including with respect to the expected closing date of the transaction with T-Mobile. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of UScellular's Form 10-K, as updated by any UScellular Form 10-Q filed subsequent to such Form 10-K. For more information about UScellular, visit: United States Cellular Corporation Summary Operating Data (Unaudited) As of or for the Quarter Ended 3/31/202512/31/20249/30/20246/30/20243/31/2024 Retail ConnectionsPostpaidTotal at end of period1 3,946,0003,985,0003,999,0004,027,0004,051,000 Gross additions 105,000140,000123,000117,000106,000 Handsets 68,00093,00084,00073,00063,000 Connected devices 37,00047,00039,00044,00043,000 Net additions (losses)1 (39,000)(14,000)(28,000)(24,000)(44,000) Handsets (38,000)(19,000)(28,000)(29,000)(47,000) Connected devices (1,000)5,000—5,0003,000 ARPU2 $ 52.06$ 51.73$ 52.04$ 51.45$ 51.96 ARPA3 $ 132.25$ 131.10$ 131.81$ 130.41$ 132.00 Handset upgrade rate4 3.1 %4.8 %3.5 %4.1 %4.5 % Churn rate5 1.21 %1.29 %1.25 %1.16 %1.22 % Handsets 1.03 %1.08 %1.07 %0.97 %1.03 % Connected devices 2.40 %2.67 %2.47 %2.47 %2.52 % PrepaidTotal at end of period1 431,000448,000452,000439,000436,000 Gross additions 38,00046,00057,00050,00041,000 Net additions (losses)1 (17,000)(4,000)13,0003,000(13,000) ARPU2 $ 30.76$ 30.59$ 32.01$ 32.37$ 32.25 Churn rate5 4.17 %3.70 %3.30 %3.60 %4.06 % Market penetration at end of periodConsolidated operating population 31,390,00032,550,00032,550,00032,550,00032,550,000 Consolidated operating penetration6 17 %15 %15 %15 %14 % Capital expenditures (millions) $ 53$ 162$ 120$ 165$ 131 Total cell sites in service 7,0097,0107,0076,9906,995 Owned towers 4,4134,4094,4074,3884,382 Number of colocations7 2,4692,4442,4182,3922,397 Tower tenancy rate8 1.561.551.551.551.55 1 First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base, respectively, that are not included in Net additions (losses) for the quarter. 2 Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:• Postpaid ARPU consists of total postpaid service revenues and postpaid connections.• Prepaid ARPU consists of total prepaid service revenues and prepaid connections. 3 Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period. 4 Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections. 5 Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period. 6 Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets. 7 Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower. 8 Average number of tenants that lease space on company-owned towers, measured on a per-tower basis. United States Cellular Corporation Consolidated Statement of Operations Highlights (Unaudited)Three Months Ended March 31,202520242025 vs. 2024 (Dollars and shares in millions, except per share amounts)Operating revenuesService $ 741$ 754(2) % Equipment sales 150196(24) % Total operating revenues 891950(6) % Operating expensesSystem operations (excluding Depreciation, amortization and accretion reported below) 176182(3) % Cost of equipment sold 178216(18) % Selling, general and administrative 332331— Depreciation, amortization and accretion 163165(2) % (Gain) loss on asset disposals, net 26(65) % (Gain) loss on license sales and exchanges, net (1)(1)18 % Total operating expenses 850899(5) % Operating income 4151(19) % Other income (expense)Equity in earnings of unconsolidated entities 3642(14) % Interest and dividend income 3220 % Interest expense (40)(43)10 % Total other income (expense) (1)1N/M Income before income taxes 4052(22) % Income tax expense 2028(26) % Net income 2024(17) % Less: Net income attributable to noncontrolling interests, net of tax 26(75) % Net income attributable to UScellular shareholders $ 18$ 183 % Basic weighted average shares outstanding 8585— Basic earnings per share attributable to UScellular shareholders $ 0.21$ 0.213 % Diluted weighted average shares outstanding 8888— Diluted earnings per share attributable to UScellular shareholders $ 0.21$ 0.202 % N/M - Percentage change not meaningful United States Cellular Corporation Consolidated Statement of Cash Flows (Unaudited)Three Months Ended March 31,20252024 (Dollars in millions)Cash flows from operating activitiesNet income $ 20$ 24 Add (deduct) adjustments to reconcile net income to net cash flows from operating activitiesDepreciation, amortization and accretion 163165 Bad debts expense 2029 Stock-based compensation expense 1713 Deferred income taxes, net (8)4 Equity in earnings of unconsolidated entities (36)(42) Distributions from unconsolidated entities 1122 (Gain) loss on asset disposals, net 26 (Gain) loss on license sales and exchanges, net (1)(1) Other operating activities 11 Changes in assets and liabilities from operationsAccounts receivable 116 Equipment installment plans receivable 382 Inventory 124 Accounts payable (17)(15) Customer deposits and deferred revenues (8)5 Accrued taxes 2923 Accrued interest 99 Other assets and liabilities (82)(82) Net cash provided by operating activities 160203 Cash flows from investing activitiesCash paid for additions to property, plant and equipment (72)(133) Cash paid for licenses (2)(11) Net cash used in investing activities (74)(144) Cash flows from financing activitiesIssuance of long-term debt —40 Repayment of long-term debt (5)(55) Tax payments, net of cash receipts, for stock-based compensation awards (7)— Repurchase of Common Shares (21)— Distributions to noncontrolling interests (2)(2) Cash paid for software license agreements (9)(9) Other financing activities —(2) Net cash used in financing activities (44)(28) Net increase in cash, cash equivalents and restricted cash 4231 Cash, cash equivalents and restricted cashBeginning of period 159179 End of period $ 201$ 210 United States Cellular Corporation Consolidated Balance Sheet Highlights (Unaudited)ASSETSMarch 31, 2025December 31, 2024 (Dollars in millions)Current assetsCash and cash equivalents $ 182$ 144 Accounts receivable, net 925955 Inventory, net 178179 Prepaid expenses 6346 Other current assets 2521 Total current assets 1,3731,345 Assets held for sale 1— Licenses 4,5814,579 Investments in unconsolidated entities 479454 Property, plant and equipment, net 2,3942,502 Operating lease right-of-use assets 925926 Other assets and deferred charges 612643 Total assets $ 10,365$ 10,449 United States Cellular Corporation Consolidated Balance Sheet Highlights (Unaudited)LIABILITIES AND EQUITYMarch 31, 2025December 31, 2024 (Dollars in millions, except per share amounts)Current liabilitiesCurrent portion of long-term debt $ 26$ 22 Accounts payable 207242 Customer deposits and deferred revenues 231238 Accrued taxes 5730 Accrued compensation 3393 Short-term operating lease liabilities 140141 Other current liabilities 113118 Total current liabilities 807884 Deferred liabilities and creditsDeferred income tax liability, net 720728 Long-term operating lease liabilities 824822 Other deferred liabilities and credits 570570 Long-term debt, net 2,8292,837 Noncontrolling interests with redemption features 1616 EquityUScellular shareholders' equitySeries A Common and Common Shares, par value $1.00 per share 8888 Additional paid-in capital 1,8001,783 Treasury shares (125)(112) Retained earnings 2,8222,818 Total UScellular shareholders' equity 4,5854,577 Noncontrolling interests 1415 Total equity 4,5994,592 Total liabilities and equity $ 10,365$ 10,449 United States Cellular Corporation Segment Results (Unaudited)Three Months Ended March 31, UScellular 202520242025vs. 2024 (Dollars in millions)Operating RevenuesWireless $ 864$ 925(7) % Towers 61585 % Intra-company eliminations (34)(33)(3) % Total operating revenues 891950(6) % Operating expensesWireless 844896(6) % Towers 403611 % Intra-company eliminations (34)(33)(3) % Total operating expenses 850899(5) % Operating income $ 41$ 51(19) % Adjusted OIBDA1 (Non-GAAP) $ 215$ 228(6) % Adjusted EBITDA1 (Non-GAAP) $ 254$ 272(7) % Capital expenditures $ 53$ 131(60) % 1 Adjusted OIBDA and Adjusted EBITDA are non-GAAP financial measures which UScellular uses as measurements of profitability. See EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations within this earnings release for additional information. United States Cellular Corporation Segment Results (Unaudited)Three Months Ended March 31, UScellular Wireless 202520242025vs. 2024 (Dollars in millions)Retail service $ 660$ 678(3) % Other 54518 % Service revenues 714729(2) % Equipment sales 150196(24) % Total operating revenues 864925(7) % System operations (excluding Depreciation, amortization and accretion reported below) 191197(3) % Cost of equipment sold 178216(18) % Selling, general and administrative 322324— Depreciation, amortization and accretion 152154(2) % (Gain) loss on asset disposals, net 26(73) % (Gain) loss on license sales and exchanges, net (1)(1)18 % Total operating expenses 844896(6) % Operating income $ 20$ 29(30) % Adjusted OIBDA1 (Non-GAAP) $ 182$ 195(7) % Adjusted EBITDA1 (Non-GAAP) $ 182$ 195(7) % Capital expenditures $ 51$ 127(60) %Three Months Ended March 31, UScellular Towers 202520242025vs. 2024 (Dollars in millions)Third-party revenues $ 27$ 256 % Intra-company revenues 34333 % Total tower revenues 61585 % System operations (excluding Depreciation, amortization and accretion reported below) 19184 % Selling, general and administrative 10733 % Depreciation, amortization and accretion 11115 % Total operating expenses 403611 % Operating income $ 21$ 22(5) % Adjusted OIBDA1 (Non-GAAP) $ 33$ 33(1) % Adjusted EBITDA1 (Non-GAAP) $ 33$ 33(1) % Capital expenditures $ 2$ 4(42) % 1 Adjusted OIBDA and Adjusted EBITDA are non-GAAP financial measures which UScellular uses as measurements of profitability. See EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations within this earnings release for additional information. United States Cellular Corporation Financial Measures (Unaudited) Free Cash FlowThree Months Ended March 31, UScellular 20252024 (Dollars in millions)Cash flows from operating activities (GAAP) $ 160$ 203 Cash paid for additions to property, plant and equipment (72)(133) Cash paid for software license agreements (9)(9) Free cash flow (Non-GAAP)1 $ 79$ 61 1 Free cash flow is a non-GAAP financial measure which UScellular believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. United States Cellular CorporationEBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations(Unaudited) EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliations below. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. UScellular does not intend to imply that any such items set forth in the reconciliations below are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of UScellular's operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented below as they provide additional relevant and useful information to investors and other users of UScellular's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income, Income before income taxes and/or Operating income. Income and expense items below Operating income are not provided at the individual segment level for UScellular Wireless and UScellular Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income rather than Net income at the segment Months Ended March 31, UScellular 20252024 (Dollars in millions)Net income (GAAP) $ 20$ 24 Add back or deduct:Income tax expense 2028 Income before income taxes (GAAP) 4052 Add back:Interest expense 4043 Depreciation, amortization and accretion expense 163165 EBITDA (Non-GAAP) 243260 Add back or deduct:Expenses related to strategic alternatives review 107 (Gain) loss on asset disposals, net 26 (Gain) loss on license sales and exchanges, net (1)(1) Adjusted EBITDA (Non-GAAP) 254272 Deduct:Equity in earnings of unconsolidated entities 3642 Interest and dividend income 32 Adjusted OIBDA (Non-GAAP) $ 215$ 228Three Months Ended March 31, UScellular Wireless 20252024 (Dollars in millions)EBITDA (Non-GAAP) $ 172$ 183 Add back or deduct:Expenses related to strategic alternatives review 97 (Gain) loss on asset disposals, net 26 (Gain) loss on license sales and exchanges, net (1)(1) Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 182195 Deduct:Depreciation, amortization and accretion 152154 Expenses related to strategic alternatives review 97 (Gain) loss on asset disposals, net 26 (Gain) loss on license sales and exchanges, net (1)(1) Operating income (GAAP) $ 20$ 29Three Months Ended March 31, UScellular Towers 20252024 EBITDA (Non-GAAP) $ 32$ 33 Add back or deduct:Expenses related to strategic alternatives review 1— Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 3333 Deduct:Depreciation, amortization and accretion 1111 Expenses related to strategic alternatives review 1— Operating income (GAAP) $ 21$ 22 View original content: SOURCE United States Cellular Corporation
Yahoo
28-04-2025
- Business
- Yahoo
Terrestrial Telecommunication Services Stocks Q4 In Review: U.S. Cellular (NYSE:USM) Vs Peers
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the terrestrial telecommunication services industry, including U.S. Cellular (NYSE:USM) and its peers. Terrestrial telecommunication companies face an uphill battle, as they mostly sell into a deflationary market, where the price of moving a bit tends to decrease over time with better technology. Without dependable volume growth, revenue growth could be challenged. Unfortunately, broadband penetration in their core US market is quite high already. On the other hand, data consumption from streaming entertainment and 5G expansion could provide a floor on growth for the next number of years. As if that wasn't enough to worry about, competition is intense, with larger telecom providers and hyperscalers expanding their own networks. The 4 terrestrial telecommunication services stocks we track reported a very strong Q4. As a group, revenues beat analysts' consensus estimates by 0.8%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.9% since the latest earnings results. Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE:USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services. U.S. Cellular reported revenues of $970 million, down 3% year on year. This print exceeded analysts' expectations by 0.6%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' EPS estimates. "In 2024, UScellular made significant progress in enhancing shareholder value, while remaining steadfast in its mission of connecting people to what matters most," said Laurent Therivel, UScellular President and CEO. U.S. Cellular achieved the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $66.71. Is now the time to buy U.S. Cellular? Access our full analysis of the earnings results here, it's free. With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE:LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers. Lumen reported revenues of $3.33 billion, down 5.3% year on year, outperforming analysts' expectations by 4.2%. The business had a stunning quarter with a solid beat of analysts' EPS estimates. Lumen delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 33.3% since reporting. It currently trades at $3.35. Is now the time to buy Lumen? Access our full analysis of the earnings results here, it's free. Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ:CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries. Cogent reported revenues of $252.3 million, down 7.3% year on year, falling short of analysts' expectations by 2.5%. Still, it was a satisfactory quarter as it posted a solid beat of analysts' EPS estimates. Cogent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 34.1% since the results and currently trades at $52.78. Read our full analysis of Cogent's results here. Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE:TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States. Telephone and Data Systems reported revenues of $1.24 billion, down 5.5% year on year. This number topped analysts' expectations by 1%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates. The stock is down 8.6% since reporting and currently trades at $36.21. Read our full, actionable report on Telephone and Data Systems here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Is cell service getting worse? One study shows that it is
(WJET/WFXP) — Cell service may be getting worse across the country according to a new J.D. Power study. The study showed a dramatic increase in reported wireless network problems between the first and the second half of 2024. For the first half of 2024, problems nationally were reported at 9 problems per use, and in the second half, that jumped to 11 problems per use. That represents a 22% increase less than one year, but several factors in the coming months and years will determine if this trend will continue upwards. These trends also come at a time when more than 1/3 of Gen X and Gen Y use their phone more than 8 hours every two days. Much of these 8 hours are spent streaming, gaming, or browsing, increasing the demand and stress on carriers 'Streaming has become ubiquitous and is straining networks,' said Carl Lepper, senior director of technology, media and telecom at J.D. Power. 'Network quality is a critical factor in the customer journey, specifically the second highest reason why they choose to leave their carrier and join another, behind price. As we have been experiencing this generational trend of increased usage, especially for streaming, gaming, and browsing, networks need to prioritize network quality.'. The study showcased the top-performing carriers across six regions: Mid-Atlantic, North Central, Northeast, Southeast, Southwest, and West. Verizon Wireless leads two regions and is tied in another, having the least amount of problems in the Mid-Atlantic and the West regions. Verizon and AT&T are both tied for the least amount of problems in the Southwest region. UScellular ranks the highest in the North Central region and T-Mobile ranks the highest in the Southeast Region. But are these problems a sign of more trouble to come, or is there steps in place to avoid more problems in the future? Laurent Therivel, the president and CEO of UScellular says in his 2025 predictions that as Americans continue to use more and more data, more investment and more frequency spectrusts are needed to help maintain the U.S.'s competitiveness on a global scale. In 2023 alone, Americans used a total of 100 Trillion MB, that's 100,000,000 Terabytes. That staggering figure is double what was used in 2021, and 33 times bigger than what was used in 2013. However, many industry experts believe that recent innovations can help bring high-speed wireless to more areas. These innovations help lower the complexity and scalability that can come with a large-scale deployment of wireless service in an area that can help meet the ever-growing needs of the customers. As we continue to grow and expand accessibility and availability of 5G coverage across the nation, another concern lingers in less than a decade, 6G service. The next generation of service is expected to be introduced by 2030, and even as soon as 2028. That's according to John Paleski, President of Subcarrier Communications, who continues citing concerns of the next generation and what will need to be done to support, physically, these new units. These upgrades to previous towers, and the construction of new ones, will not be a cheap endeavor for carriers and tower owners. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
