Shares of telecom company Telephone and Data Systems (NYSE:TDS) were slammed on Friday. The stock was down 15.9% by the time the market closed.
The stock's decline came as TDS reported solid revenue and worse-than-expected earnings per share for its third quarter.
TDS reported third-quarter revenue of $1.32 billion, up from $1.30 billion in the year-ago period. But net income per share fell from $0.41 in the year-ago period to $0.15. The company's earnings per share missed analysts' consensus forecast for the metric by $0.07.
"Our results for the third quarter reflect the investments we are making throughout the TDS Family of Companies," CEO LeRoy Carlson said in the tech company's third-quarter earnings release. "U.S. Cellular is continuing to make improvements to its high-performing network, and TDS Telecom is making progress deploying fiber in its new out-of-territory fiber markets."
In what is likely a reflection of its investments, TDS lowered the high end of its expected range for full-year 2019 adjusted EBITDA. Management now expects 2019 adjusted EBITDA to be between $1.210 billion and $1.340 billion. Previously, it expected it to be between $1.185 billion and $1.365 billion.