By Shares of Telephone & Data Systems (TDS) and its subsidiary U.S. Cellular dipped following the release of their fourth-quarter financial reports.
TDS Stock Performance
TDS stock experienced a significant decline of 19% during morning trading, dropping to $14.96. However, considering the past 12 months, the shares are still up by an impressive 37%. This increase can be attributed to the company’s announcement last year about the exploration of a potential sale of U.S. Cellular.
U.S. Cellular Stock Performance
Shares of U.S. Cellular also faced a decline of 8% during morning trading. Despite this setback, the stock has enjoyed a remarkable 84% increase over the past year, primarily due to speculations surrounding a takeover or a company breakup.
Factors Impacting TDS’ Fourth-Quarter Results
TDS reported fourth-quarter results that were affected by a non-cash goodwill impairment charge of $547 million. This charge was identified during the annual goodwill assessment and was directly linked to higher interest rates and competitive pressures witnessed in the company’s legacy landline business.
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