U.S. Cellular (USM) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - United States Cellular (USM) reported $922 million in revenue for Q3 2024, a year-over-year decline of 4.3% [1] - The EPS for the same period was$ 0.26, unchanged from the previous year, with a surprise of +44.44% compared to the consensus estimate of $0.18 [1] Financial Performance - Revenue of$ 922 million was below the Zacks Consensus Estimate of $940.51 million, resulting in a surprise of -1.97% [1] - Net additions in Retail Connections - Postpaid were -28 million, better than the average estimate of -40 million [3] - Total connections stood at 4.45 million, slightly below the estimated 4.47 million [3] - Gross additions in Retail Connections - Postpaid were 123 million, exceeding the average estimate of 109.14 million [3] - Operating Revenues from Service were$ 747 million, slightly above the average estimate of $742.31 million, reflecting a year-over-year change of -2% [3] - Net operating revenues from Service-Retail were$ 669 million, compared to the average estimate of $667.13 million, also showing a year-over-year decline of -2.6% [3] - Operating Revenues from Equipment sales were$ 175 million, below the average estimate of $187.10 million, with a year-over-year decline of -12.9% [3] Stock Performance - Shares of U.S. Cellular have returned +11.5% over the past month, contrasting with the Zacks S&P 500 composite's -1% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]