S&P 500 (NYSE:SPY) component Frontier Communications Corporation (NYSE:FTR) will unveil its latest earnings on Wednesday, August 3, 2011. Frontier Communications Corporation provides telecommunications services to rural areas and small and medium-sized towns and cities.
Frontier Communications Corporation Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 6 cents per share, a decline of 68.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up, but has dropped from 7 cents during the last month. For the year, analysts are projecting profit of 26 cents per share, a decline of 29.7% from last year.
Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting net income of 6 cents per share in first quarter to fall in line with expectations, the company beat estimates by 4 cents in the fourth quarter of the last fiscal year.
Wall St. Revenue Expectations: On average, analysts predict $1.33 billion in revenue this quarter, a rise of more than twofold from the year ago quarter. Analysts are forecasting total revenue of $5.28 billion for the year, a rise of 38.9% from last year’s revenue of $3.8 billion.
Analyst Ratings: Analysts are bullish on Frontier Communications as eight analysts rate it as a buy, three rate it as a sell and five rate it as a hold.
Revenue has now gone up for three straight quarters. In first quarter, revenue rose more than twofold to $1.35 billion while the figure rose more than twofold in the fourth quarter of the last fiscal year from the year earlier and more than twofold in the third quarter of the last fiscal year.
The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of more than threefold. The quarter with the biggest boost was the fourth quarter of the last fiscal year, which saw a 944.6% surge.
Competitors to Watch: AT&T Inc. (NYSE:T), Sprint (NYSE:S), Windstream Corporation (NASDAQ:WIN), 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).
Stock Price Performance: During June 1, 2011 to July 28, 2011, the stock price had fallen $1.03 (-12.1%) from $8.50 to $7.47. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 4% (+35 cents) over that span. It saw one of its worst periods between July 8, 2011 and July 18, 2011 when shares fell for seven-straight days, falling 7.6% (-62 cents) over that span. Shares are down $1.82 (-19.6%) year to date.
(Source: Xignite Financials)