Frontier Communications Earnings: Tops Revenue Estimate, Stock Pops

S&P 500 (NYSE:SPY) component Frontier Communications Corporation (NASDAQ:FTR) reported its results for the first 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 First Quarter

Results: Net income for Frontier Communications Corporation fell to $26.8 million (3 cents per share) vs. $54.7 million (5 cents per share) a year earlier. This is a decline of 51.1% from the year-earlier quarter.

Revenue: Fell 5.8% to $1.27 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Frontier Communications Corporation 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 $1.26 billion.

Quoting Management: “Frontier’s successful systems conversion of the remaining nine states in March has enabled us to turn the page from acquisition integration to a focus on revenue growth, broadband penetration, and operational excellence,” said Maggie Wilderotter, Chairman & CEO of Frontier Communications. “Our solid first quarter results show progress on revenue stability, expense reductions and margin expansion. We are well on our way to achieving our 2012 guidance.”

Key Stats:

For each of the last four quarters, the company has seen its net income fall. In the fourth quarter of the last fiscal year, net income fell 8.1% while the figure fell 29.7% in the third quarter of the last fiscal year and 8.1% in the second quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the fourth quarter of the last fiscal year, revenue declined 5.6% to $1.28 billion while the figure fell 8% in the third quarter of the last fiscal year from the year earlier.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 7 cents versus a mean estimate of net income of 5 cents per share.

Looking Forward: The average estimate for the second quarter remains unchanged at 6 cents a share. For the fiscal year, the average estimate has been unchanged at 24 cents a share.

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

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