Frontier Communications Corp Earnings Cheat Sheet: Revenue Sees Decline, Net Income Falls

S&P 500 (NYSE:SPY) component Frontier Communications Corporation (NYSE:FTR) reported its results for the third quarter. Frontier Communications provides telecommunications services to rural areas and small and medium-sized towns and cities.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Frontier Communications Earnings Cheat Sheet for the Third Quarter

Results: Net income for the telecom services company fell to $20.4 million (2 cents per share) vs. $29 million (3 cents per share) a year earlier. This is a decline of 29.7% from the year earlier quarter.

Revenue: Fell 8% to $1.29 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FTR reported adjusted net income of 5 cents per share. By that measure, the company fell short of mean estimate of 6 cents per share. Analysts were expecting revenue of $1.3 billion.

Quoting Management: “Frontier’s third quarter showed the strongest level of broadband growth since we closed on our acquisition last year,” said Maggie Wilderotter, Chairman & CEO of Frontier Communications. “In total, we’ve brought broadband to 592,000 new homes while removing $496 million of annualized costs. We also recently completed our largest successful conversion of the acquired property operating systems onto Frontier’s legacy platform, which will further enhance our marketing, streamline

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise more than twofold.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 8.1% from the year earlier quarter.

The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of 6 cents.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 5 cents per share, a drop from 6 cents. For the fiscal year, the average estimate has moved down from 26 cents a share to 24 cents over the last ninety days.

Competitors to Watch: AT&T Inc. (NYSE:T), Iowa Telecommunications Services, Inc. (IWA), Windstream Corporation (NASDAQ:WIN), Sprint Nextel (NYSE:S), Verizon Communications Inc. (NYSE:VZ), Telephone & Data Systems, Inc. (NYSE:TDS), Warwick Valley Telephone Co. (NASDAQ:WWVY), Otelco, Inc. (NASDAQ:OTT), Cbeyond, Inc. (NASDAQ:CBEY), Cincinnati Bell Inc. (NYSE:CBB), and CenturyLink, Inc. (NYSE:CTL).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

More from The Cheat Sheet