Frontier Communications Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Frontier Communications (NASDAQ:FTR) will unveil its latest earnings on Tuesday, November 6, 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 net income of 7 cents per share, a rise of 40% 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 8.3% versus last year to 26 cents.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 8 cents per share against a mean estimate of net income of 4 cents per share. In the first quarter, it missed forecasts by one cent.

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A Look Back: In the second quarter, profit fell 44.2% to $18 million (2 cents a share) from $32.3 million (3 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.8% to $1.26 billion from $1.32 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 4.7% in revenue from the year-earlier quarter to $1.23 billion.

Analyst Ratings: There are mostly holds on the stock with seven of 13 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 8% in the third quarter of the last fiscal year, 5.6% in fourth quarter of the last fiscal year and 5.8% in the first quarter and then fell again in the second quarter.

Heading into this earnings announcement, net income has dropped 33.3% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.84 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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

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