United States Cellular Corporation (USM)

United States Cellular Corp (USM) dropped by 17.35% due to the company's underwhelming results and provided weak forward guidance, failing to meet Wall Street's expectations. Despite efforts to drive growth and improve profitability, US Cellular struggled to compete for subscribers in a highly competitive market.

• Fourth Quarter Performance: In the fourth quarter of 2023, US Cellular reported a 4.6% year-over-year decline in revenue to $1.0 billion. However, the company achieved net income of $14 million, or $0.16 per share, compared to a net loss of $0.33 per share in the same period last year. Analysts had anticipated lower net income of $0.04 per share on revenue of $984.2 million.
• Key Metrics and Challenges: CEO Laurent Therivel highlighted positive aspects such as a 2% growth in postpaid average revenue per user and a significant 46% increase in fixed wireless customers to 114,000. Additionally, tower rental revenue grew by 8% year over year in 2023, amounting to $100 million. However, despite these improvements, US Cellular faced challenges in attracting subscribers amidst intense competition in the mobile network operator market.
• Outlook and Investor Reaction: The disappointing results and forward guidance led to a sharp decline in US Cellular's stock price, reflecting investor concerns about the company's ability to sustain growth and profitability in a competitive environment. As US Cellular continues to navigate challenges in subscriber acquisition, investors will closely monitor the company's strategies and performance in the coming quarters.

USM's stock fell related to its Q1 earnings report. USM's revenue stood at $986 million, down from $1,010 million from the prior-year quarter’s levels. The company reported a negative free cash flow of $162 million against a positive cash flow of $159 million in the prior-year quarter.

https://finance.yahoo.com/news/u-cellular-usm-q1-earnings-144502948.html