Frontier Communications First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Frontier Communications (NYSE:FTR) will unveil its latest earnings on Monday, May 7, 2012. Frontier Communications provides telecommunications services to rural areas and small and medium-sized towns and cities.

Frontier Communications Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 6 cents per share, no change 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 was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 0% versus last year to 24 cents.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 7 cents per share against a mean estimate of profit of 5 cents. The company fell in line with estimates in the third quarter of the last fiscal year.

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Wall St. Revenue Expectations: On average, analysts predict $1.26 billion in revenue this quarter, a decline of 6.7% from the year-ago quarter. Analysts are forecasting total revenue of $4.94 billion for the year, a decline of 5.7% from last year’s revenue of $5.24 billion.

Analyst Ratings: Analysts seem relatively indifferent about Frontier Communications with nine of 16 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 8.1% to $42.2 million (4 cents a share) from $46 million (5 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.6% to $1.28 billion from $1.36 billion.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 8.1% in the second quarter of the last fiscal year, by 29.7% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 8% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 3, 2012 and May 1, 2012, the stock price fell 37 cents (-8.4%), from $4.41 to $4.04. The stock price saw one of its best stretches over the last year between March 28, 2012 and April 4, 2012, when shares rose for six straight days, increasing 8.7% (+35 cents) over that span. It saw one of its worst periods between December 6, 2011 and December 15, 2011 when shares fell for eight straight days, dropping 13% (-71 cents) over that span.

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

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