We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. Cellular's Q1 Earnings Miss Estimates, Revenues Decline Y/Y
Read MoreHide Full Article
U.S. Cellular Corporation (USM - Free Report) reported soft first-quarter 2025 results, with both top and bottom lines missing the respective Zacks Consensus Estimate. The company reported a revenue decline year over year, owing to a decrease in postpaid and prepaid retail connections. However, increasing customer growth in fixed wireless businesses partially supported the top line. Healthy postpaid handset growth and improvement in tower rental revenues are tailwinds. The 5G mid-band network deployment is boosting speed and capacity and driving growth in the fixed wireless portfolio.
USM’s Net Income
The company reported a net income of $18 million or 21 cents per share compared with $18 million or 20 cents in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 16 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
United States Cellular Corporation Price, Consensus and EPS Surprise
The company generated $891 million in operating revenues compared with $950 million in the prior-year quarter. Net sales were negatively affected by a decline in postpaid and prepaid retail connections. The top line also missed the Zacks Consensus Estimate of $925 million.
Service revenues decreased to $741 million from $754 million, while Equipment sales registered $150 million in revenues compared with $196 million in the prior-year quarter.
Fixed wireless customers grew 21% year over year to 150,000. Tower business witnessed healthy momentum during the quarter and registered revenues of $61 million, up 5% year over year. Management’s effort to diversify its third-party customer base is a positive factor.
Handset connections were 68,000, up from the prior-year quarter’s figure of 63,000. Handset churn rate was 1.03%, matching the prior-year quarter’s figure. Connected devices decreased to 37,000 from 43,000, while the churn rate was 2.4%, down from 2.52% in the year-ago quarter. Total postpaid connections declined to 3,946,000 from 4,051,000 in the year-earlier quarter. Total prepaid connections were 431,000, down from 436,000 in the year-ago quarter.
Postpaid average revenues per account improved to $132.25 from $132 in the year-ago quarter. Postpaid ARPU rose to $52.06 from $51.96 a year ago, with postpaid churn rates of 1.21% and 1.22%, respectively. Prepaid ARPU was $30.76, down from $32.25 in the prior-year quarter. The prepaid churn rate increased to 4.17% from 4.06% recorded in the year-ago quarter.
Quarterly Details of USM
Adjusted EBITDA in the quarter was $254 million, down from $272 million in the prior-year quarter. Adjusted OIBDA was $215 million, down from $228 million in the year-earlier quarter. Total operating expenses were $850 million, down 5% year over year. The company reported an operating income of $41 million compared with $51 million in the prior-year quarter.
U.S. Cellular's Cash Flow & Liquidity
In the March quarter, U.S. Cellular generated $160 million of cash from operating activities compared with $203 million in the year-ago quarter. As of March 31, 2025, the company had $182 million in cash and cash equivalents and $2.82 billion in long-term debt.
USM’s Zacks Rank & Stocks to Consider
U.S. Cellular currently carries a Zacks Rank #3 (Hold).
In the trailing four quarters, InterDigital delivered an earnings surprise of 160.15%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.
Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank #2 (Buy) at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. In the trailing four quarters, Ubiquiti delivered an earnings surprise of 7.48%.
Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving market changes, helps it overcome challenges and maximize growth. The company’s effective management of strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Ericsson (ERIC - Free Report) carries a Zacks Rank #2 at present. The company is well-positioned to cash in on the market momentum with its competitive 5G product portfolio. Ericsson continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. In the last reported quarter, Ericsson delivered an earnings surprise of 33.33%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
U.S. Cellular's Q1 Earnings Miss Estimates, Revenues Decline Y/Y
U.S. Cellular Corporation (USM - Free Report) reported soft first-quarter 2025 results, with both top and bottom lines missing the respective Zacks Consensus Estimate. The company reported a revenue decline year over year, owing to a decrease in postpaid and prepaid retail connections. However, increasing customer growth in fixed wireless businesses partially supported the top line. Healthy postpaid handset growth and improvement in tower rental revenues are tailwinds. The 5G mid-band network deployment is boosting speed and capacity and driving growth in the fixed wireless portfolio.
USM’s Net Income
The company reported a net income of $18 million or 21 cents per share compared with $18 million or 20 cents in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 16 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
United States Cellular Corporation Price, Consensus and EPS Surprise
United States Cellular Corporation price-consensus-eps-surprise-chart | United States Cellular Corporation Quote
U.S. Cellular's Revenues
The company generated $891 million in operating revenues compared with $950 million in the prior-year quarter. Net sales were negatively affected by a decline in postpaid and prepaid retail connections. The top line also missed the Zacks Consensus Estimate of $925 million.
Service revenues decreased to $741 million from $754 million, while Equipment sales registered $150 million in revenues compared with $196 million in the prior-year quarter.
Fixed wireless customers grew 21% year over year to 150,000. Tower business witnessed healthy momentum during the quarter and registered revenues of $61 million, up 5% year over year. Management’s effort to diversify its third-party customer base is a positive factor.
Handset connections were 68,000, up from the prior-year quarter’s figure of 63,000. Handset churn rate was 1.03%, matching the prior-year quarter’s figure. Connected devices decreased to 37,000 from 43,000, while the churn rate was 2.4%, down from 2.52% in the year-ago quarter. Total postpaid connections declined to 3,946,000 from 4,051,000 in the year-earlier quarter. Total prepaid connections were 431,000, down from 436,000 in the year-ago quarter.
Postpaid average revenues per account improved to $132.25 from $132 in the year-ago quarter. Postpaid ARPU rose to $52.06 from $51.96 a year ago, with postpaid churn rates of 1.21% and 1.22%, respectively. Prepaid ARPU was $30.76, down from $32.25 in the prior-year quarter. The prepaid churn rate increased to 4.17% from 4.06% recorded in the year-ago quarter.
Quarterly Details of USM
Adjusted EBITDA in the quarter was $254 million, down from $272 million in the prior-year quarter. Adjusted OIBDA was $215 million, down from $228 million in the year-earlier quarter. Total operating expenses were $850 million, down 5% year over year. The company reported an operating income of $41 million compared with $51 million in the prior-year quarter.
U.S. Cellular's Cash Flow & Liquidity
In the March quarter, U.S. Cellular generated $160 million of cash from operating activities compared with $203 million in the year-ago quarter. As of March 31, 2025, the company had $182 million in cash and cash equivalents and $2.82 billion in long-term debt.
USM’s Zacks Rank & Stocks to Consider
U.S. Cellular currently carries a Zacks Rank #3 (Hold).
InterDigital (IDCC - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, InterDigital delivered an earnings surprise of 160.15%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.
Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank #2 (Buy) at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. In the trailing four quarters, Ubiquiti delivered an earnings surprise of 7.48%.
Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving market changes, helps it overcome challenges and maximize growth. The company’s effective management of strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Ericsson (ERIC - Free Report) carries a Zacks Rank #2 at present. The company is well-positioned to cash in on the market momentum with its competitive 5G product portfolio. Ericsson continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. In the last reported quarter, Ericsson delivered an earnings surprise of 33.33%.