Frontier Communications Earnings: Everything You Must Know Now

Frontier Communications Corporation (NYSE:FTR) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Frontier Communications Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25% to $0.06 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Decreased 5.42% to $1.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Frontier Communications Corporation reported adjusted EPS income of $0.06 per share. By that measure, the company met the mean analyst estimate of $0.06. It beat the average revenue estimate of $1.19 billion.

Quoting Management: “Frontier maintained strong momentum in the second quarter of 2013, with sequentially higher broadband net additions of 29,500 and continued improvement in business and residential customer retention and metrics,” said Maggie Wilderotter, Chairman and CEO of Frontier Communications. “Our bundled packages as well as our standalone broadband offering, Simply Broadband, continued to be strongly received and, together with our local engagement marketing strategy, helped to drive excellent gross customer additions. We substantially improved our business and residential net customer losses during the quarter. We are pleased that our combined business and residential revenue in the second quarter were only 0.3% less than the first quarter of 2013 (excluding Mohave) – getting Frontier closer to our objective of growing revenue. Finally, our continuing expense management efforts allowed us to show a slight improvement in operating cash flow margins to 46.8%.”

Key Stats (on next page)…

Revenue decreased 1.24% from $1.21 billion in the previous quarter. EPS increased 20% from $0.05 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.06 and has not changed. For the current year, the average estimate is a profit of $0.22, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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