Telephone and Data Systems

(TDS) - Get Report

missed Wall Street estimates by 3 cents a share, but the company saw revenue growth from last year's results.

The telecommunications company posted first-quarter net income of $13.6 million, or 23 cents a share, down from $28.2 million, or 47 cents a share, in the year-ago quarter. On a pro forma basis, the company earned 61 cents a share, up from 52 cents last year, but 3 cents below the average analyst estimate, according to Thomson Financial/First Call.

Revenue was up 10.8% to $665.2 million, ahead of Wall Street's estimate of $664.9. U.S. Cellular, the company's mobile communications division, posted a revenue increase of 8.8%, while TDS Telecom, the company's long distance provider, saw a 16.3% rise.

In a press release, the company said it expected to post a higher net subscriber rate in its wireless division, but net adds were affected by the bankruptcy of a major customer.

Shares of TDS were recently trading at $89.28, up 3.09% from Monday's closing price of $86.60.