Telephone and Data Systems faces earnings test after fiber push

Telephone and Data Systems (TDS) is set to report its second-quarter earnings, with analysts anticipating a significant drop in profitability compared to the previous quarter, attributed to a shift from one-time spectrum gains. Investors will be closely watching the company's fiber-broadband expansion, especially new fiber address additions and capital allocation, to see if it can deliver sustainable returns and offset declines in legacy operations. Despite trading near multi-year lows, the stock has seen a substantial three-year return, making the upcoming earnings report crucial for clarifying its valuation and the viability of its fiber growth strategy.