- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 1186.4% when compared to the same quarter one year prior, rising from $1.42 million to $18.25 million.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.50, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for TELEPHONE & DATA SYSTEMS INC is rather high; currently it is at 51.29%. Regardless of TDS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TDS's net profit margin of 1.52% is significantly lower than the industry average.
- Net operating cash flow has significantly decreased to $104.94 million or 57.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- TDS has underperformed the S&P 500 Index, declining 5.70% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Technology sector as a whole closed the day up 0.6% versus the S&P 500, which was up 0.9%. Laggards within the Technology sector included Trio-Tech International ( TRT), down 3.8%, One Horizon Group ( OHGI), down 5.2%, BluePhoenix Solutions ( BPHX), down 2.6%, Cover-All Technologies ( COVR), down 1.6% and Intelligent Systems ( INS), down 1.8%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Telephone and Data Systems ( TDS) is one of the companies that pushed the Technology sector lower today. Telephone and Data Systems was down $1.18 (4.8%) to $23.32 on heavy volume. Throughout the day, 1,497,924 shares of Telephone and Data Systems exchanged hands as compared to its average daily volume of 587,700 shares. The stock ranged in price between $23.08-$24.57 after having opened the day at $24.50 as compared to the previous trading day's close of $24.50. Telephone and Data Systems, Inc., a diversified telecommunications service company, provides wireless and wireline telecommunications services in the United States. The company operates in three segments: Wireline, Cable, and Hosted and Managed Services. Telephone and Data Systems has a market cap of $2.5 billion and is part of the telecommunications industry. Shares are down 5.0% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Telephone and Data Systems a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Telephone and Data Systems as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow. Highlights from TheStreet Ratings analysis on TDS go as follows: