Shares of Telephone and Data Systems (TDS) tumbled 5.14% in pre-market trading on Friday following the release of its third-quarter 2025 earnings report, which fell short of analyst expectations. The telecommunications company reported a larger-than-expected loss and a significant revenue miss, overshadowing positive developments in its fiber strategy and a new share repurchase program.
TDS reported a quarterly adjusted loss of $0.84 per share, considerably worse than the mean analyst expectation of a $0.09 loss. Revenue for the quarter came in at $308.5 million, representing a 6% year-over-year decline and falling far short of the $1.16 billion analysts had projected. The company attributed part of the revenue decline to the divestiture of non-strategic assets, which impacted TDS Telecom revenues by $6 million.
Despite the disappointing results, TDS highlighted some positive aspects of its performance. The company's fiber strategy showed progress, with TDS Telecom adding 11,200 residential fiber connections in Q3. Additionally, TDS's board approved a new $500 million share repurchase program, which could potentially support the stock price in the future. However, these developments were not enough to offset investor concerns about the company's financial performance, leading to the sharp pre-market decline.
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