Frontier Communications Corp Earnings: Four Quarters in a Row of Falling Profit, but Tops Expectations

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

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Frontier Communications Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the telecom services company fell to $42.2 million (4 cents per share) vs. $46 million (5 cents per share) a year earlier. This is a decline of 8.1% from the year earlier quarter.

Revenue: Fell 5.6% to $1.28 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Frontier Communications Corporation reported adjusted net income of 7 cents per share. By that measure, the company beat the mean estimate of 5 cents per share. Analysts were expecting revenue of $1.27 billion.

Quoting Management: “Fourth quarter 2011 demonstrated the strongest quarterly revenue and EBITDA margin performance since our Verizon acquisition” said Maggie Wilderotter, Chairman & CEO of Frontier Communications. “We also finished a successful four state conversion, started the prep work for the additional nine states to convert in March 2012, and delivered annualized synergies of $552 million enabling us to increase our guidance for 2012 to $650 million.”

Key Stats:

The company has now seen net income fall in each of the last three quarters. In the third quarter, net income fell 29.7% from the year earlier, while the figure fell 8.1% in the second quarter.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 5 cents per share.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 8% to $1.29 billion from the year earlier quarter.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 6 cents. For the fiscal year, the average estimate has been unchanged at 22 cents a share.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com