United States Cellular (USM) reported Q2 earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.33 per share. Revenue was $916 million, surpassing the Zacks Consensus Estimate by 1.31%. The company's shares have added 18.4% since the beginning of the year. The Zacks Rank for USM is #3 (Hold), indicating that the stock is expected to perform in line with the market in the near future.
United States Cellular (USM), a regional wireless carrier, has reported its Q2 2025 earnings, showcasing a strong performance despite a strategic shift in its business model. The company reported earnings per share (EPS) of $0.36, surpassing the Zacks Consensus Estimate of $0.33 per share [1]. This marks a significant improvement from the previous quarter's EPS of $0.21, representing a 9.09% earnings surprise [1].
Revenue for the quarter ended June 2025 stood at $916 million, which was 1.31% higher than the Zacks Consensus Estimate of $907.63 million [2]. This quarterly report reflects a 1.2% decrease in revenue year-over-year, primarily due to the company's exit from the consumer wireless business and its pivot towards a focus on tower operations [2].
The company's shares have seen a notable increase, adding about 18.4% since the beginning of the year, compared to the S&P 500's gain of 8.6% [1]. This performance is attributed to the company's strong financial results and strategic changes, including the $4.3 billion sale of its wireless operations to T-Mobile [2].
USM's Zacks Rank is currently #3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [1]. The Zacks Rank takes into account earnings estimate revisions and other factors to provide a reliable measure of a stock's potential performance.
Looking ahead, investors should closely monitor USM's progress in closing additional spectrum transactions, the pace of new tenant additions on its tower footprint, and its ability to streamline costs as a stand-alone tower business [2]. The company's strategic priorities will likely influence its future performance and stock price.
References:
[1] https://finance.yahoo.com/news/united-states-cellular-usm-surpasses-230009702.html
[2] https://www.mitrade.com/insights/news/live-news/article-8-1029341-20250811
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