United States Cellular, a wireless phone company, has announced its second-quarter earnings, falling short of analysts’ expectations. However, the company has witnessed higher revenue during this period.
Strategic Alternatives Considered for UScellular
The boards of directors of Telephone and Data Systems and United States Cellular have initiated discussions on exploring strategic alternatives for UScellular, leading to a temporary halt in premarket trading of UScellular shares at $17.50.
In Q2, United States Cellular recorded earnings of $5 million, or 5 cents per share. This figure is lower than the earnings of $21 million, or 25 cents per share, reported in the same period last year. Analysts surveyed by FactSet were anticipating earnings of $17 million, or 9 cents per share.
The company’s revenue for the quarter totaled $957 million, compared to $1.03 billion in the previous year and the projected $993 million by analysts.
Customer Growth and Churn Reduction
UScellular achieved an 8% reduction in postpaid handset churn during the second quarter. Additionally, the company experienced a significant surge in Fixed Wireless customers, with a growth rate of 66% to 96,000.
Revised Revenue Guidance
The company has revised its service revenue guidance for 2023. The new estimate ranges from $3.05 billion to $3.15 billion, surpassing its earlier projection of $3.025 billion to $3.075 billion.