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Here's What Key Metrics Tell Us About U.S. Cellular (USM) Q1 Earnings
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For the quarter ended March 2024, United States Cellular (USM - Free Report) reported revenue of $950 million, down 3.7% over the same period last year. EPS came in at $0.20, compared to $0.15 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $952.51 million, representing a surprise of -0.26%. The company delivered an EPS surprise of -23.08%, with the consensus EPS estimate being $0.26.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how U.S. Cellular performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Churn rate - Postpaid: 1.2% versus 1.2% estimated by three analysts on average.
Net additions (losses) - Retail Connections - Prepaid: -13,000 thousand versus the three-analyst average estimate of -18,438.49 thousand.
Customers -Total (Total connections): 4,487 thousand versus the three-analyst average estimate of 4,578.5 thousand.
Net additions (losses) - Retail Connections - Postpaid: -44,000 thousand versus -31,132.69 thousand estimated by three analysts on average.
Churn Rate - Prepaid: 4.1% compared to the 4.1% average estimate based on three analysts.
ARPU - Prepaid: $32.25 versus $32.68 estimated by two analysts on average.
ARPU - Postpaid: $51.96 compared to the $51.45 average estimate based on two analysts.
Retail Connections Total at end of period - Prepaid: 436 thousand versus 438.85 thousand estimated by two analysts on average.
Gross additions - Retail Connections - Postpaid: 106,000 thousand versus the two-analyst average estimate of 117,677 thousand.
Retail Connections Total at end of period - Postpaid: 4,051 thousand compared to the 4,090.41 thousand average estimate based on two analysts.
Operating Revenues- Equipment sales: $196 million versus the three-analyst average estimate of $210.56 million. The reported number represents a year-over-year change of -10.5%.
Operating Revenues- Service: $754 million compared to the $745.15 million average estimate based on three analysts. The reported number represents a change of -1.7% year over year.
Shares of U.S. Cellular have returned +3.4% over the past month versus the Zacks S&P 500 composite's -2.7% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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Here's What Key Metrics Tell Us About U.S. Cellular (USM) Q1 Earnings
For the quarter ended March 2024, United States Cellular (USM - Free Report) reported revenue of $950 million, down 3.7% over the same period last year. EPS came in at $0.20, compared to $0.15 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $952.51 million, representing a surprise of -0.26%. The company delivered an EPS surprise of -23.08%, with the consensus EPS estimate being $0.26.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how U.S. Cellular performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Churn rate - Postpaid: 1.2% versus 1.2% estimated by three analysts on average.
- Net additions (losses) - Retail Connections - Prepaid: -13,000 thousand versus the three-analyst average estimate of -18,438.49 thousand.
- Customers -Total (Total connections): 4,487 thousand versus the three-analyst average estimate of 4,578.5 thousand.
- Net additions (losses) - Retail Connections - Postpaid: -44,000 thousand versus -31,132.69 thousand estimated by three analysts on average.
- Churn Rate - Prepaid: 4.1% compared to the 4.1% average estimate based on three analysts.
- ARPU - Prepaid: $32.25 versus $32.68 estimated by two analysts on average.
- ARPU - Postpaid: $51.96 compared to the $51.45 average estimate based on two analysts.
- Retail Connections Total at end of period - Prepaid: 436 thousand versus 438.85 thousand estimated by two analysts on average.
- Gross additions - Retail Connections - Postpaid: 106,000 thousand versus the two-analyst average estimate of 117,677 thousand.
- Retail Connections Total at end of period - Postpaid: 4,051 thousand compared to the 4,090.41 thousand average estimate based on two analysts.
- Operating Revenues- Equipment sales: $196 million versus the three-analyst average estimate of $210.56 million. The reported number represents a year-over-year change of -10.5%.
- Operating Revenues- Service: $754 million compared to the $745.15 million average estimate based on three analysts. The reported number represents a change of -1.7% year over year.
View all Key Company Metrics for U.S. Cellular here>>>Shares of U.S. Cellular have returned +3.4% over the past month versus the Zacks S&P 500 composite's -2.7% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.