What Happened?

Shares of telecommunications services provider Telephone and Data Systems (NYSE:TDS) jumped 6.2% in the morning session after the company reported decent fourth-quarter results: sales and EPS beat analysts' expectations. 

On the other hand, sales fell year on year, and operating income declined. The real story was the continued challenges at UScellular segment, where sales declined by 3%. 

Looking ahead, TDS Telecom's fiber broadband expansion remains a bright spot, with plans to reach 150,000 new service addresses in 2025. However, UScellular's (wireless operations) pending sale to T-Mobile and spectrum deals with Verizon and AT&T added uncertainty, as regulatory approvals remain a key hurdle. Overall, it was a mixed yet decent quarter.

After the initial pop the shares cooled down to $33.49, up 4.1% from previous close.

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What The Market Is Telling Us

Telephone and Data Systems’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Telephone and Data Systems is down 2.9% since the beginning of the year, and at $33.49 per share, it is trading 16.9% below its 52-week high of $40.31 from February 2025. Investors who bought $1,000 worth of Telephone and Data Systems’s shares 5 years ago would now be looking at an investment worth $2,065.

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