Compared to Estimates, U.S. Cellular (USM) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2023, United States Cellular (USM) reported revenue of $963 million, down 11.1% over the same period last year. EPS came in at $0.26, compared to -$0.15 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $975.71 million, representing a surprise of -1.30%. The company delivered an EPS surprise of +333.33%, with the consensus EPS estimate being $0.06.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 1.3% versus the three-analyst average estimate of 1.3%.
Net additions (losses) - Retail Connections - Postpaid: -35,000 thousand versus -23,584.6 thousand estimated by three analysts on average.
Churn Rate - Prepaid: 3.7% versus 4.2% estimated by three analysts on average.
ARPU - Postpaid: $51.11 versus the two-analyst average estimate of $50.31.
Retail Connections Total at end of period - Prepaid: 462 thousand versus 458.31 thousand estimated by two analysts on average.
Gross additions - Retail Connections - Postpaid: 128,000 thousand versus 134,124.8 thousand estimated by two analysts on average.
Retail Connections Total at end of period - Postpaid: 4,159 thousand versus 4,169.13 thousand estimated by two analysts on average.
Operating Revenues- Equipment sales: $201 million versus the three-analyst average estimate of $220.32 million. The reported number represents a year-over-year change of -33.4%.
Operating Revenues- Service: $762 million compared to the $755.39 million average estimate based on three analysts. The reported number represents a change of -2.4% year over year.
View all Key Company Metrics for U.S. Cellular here>>>
Shares of U.S. Cellular have returned +8.1% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United States Cellular Corporation (USM) : Free Stock Analysis Report
