TDS
From red ink to black ink
Telephone and Data Systems came out of the first quarter looking a lot less gloomy. The telecom company posted net income from continuing operations of $146.6 million, or $1.11 a share, versus a $5.9 million loss, or 20 cents a share, a year ago. That’s the kind of swing that makes investors sit up a little straighter.
Why you should care
Earnings flips like this don’t magically fix a company’s bigger story, but they do matter. Profitability gives TDS more breathing room, and in a capital-heavy business like telecom, breathing room is basically oxygen.
And there’s another move on the board
On top of the results, the company said it plans to acquire the public shares of Array Digital. That suggests TDS is still actively reshaping its business, which can be good news if you like strategic cleanups — and a reminder that this isn’t just a sleepy utility-style ticker coasting along.
Big picture: TDS just showed it can get back to making money, and if it keeps making portfolio moves too, the stock could have more than one storyline to trade on.