Frontier Communications Earnings: Here’s Why Shares are Up Now
Frontier Communications Corporation (NYSE:FTR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.22%.
Frontier Communications Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.05 in the quarter as EPS of $0.05 in the year-earlier quarter.
Revenue: Decreased 4.94% to $1.21 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Frontier Communications Corporation reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.06. It missed the average revenue estimate of $1.22 billion.
Quoting Management: “In the first quarter of 2013 Frontier achieved the strongest rate of broadband net additions since our acquisition of the Verizon properties in July, 2010,” said Maggie Wilderotter, Chairman and CEO of Frontier Communications. “We accelerated growth every month in the first quarter as we phased out the Apple Gift Card Promotion and replaced it with aggressive bundled price offers for packages and our standalone broadband offering, Simply Broadband. In addition, our customer retention and sales efforts substantially improved our residential net customer losses by 17,300 from Q4 2012, which improved our rate of loss from 1.5% in Q4 2012 to 1.0% in Q1 2013. We are maintaining this strong broadband and customer retention momentum into this second quarter through strong sales, continued investments in our network and exceptional customer service. As a result of these efforts, we expect revenue decline improvements in Q2. Finally, we are on track to achieve our goal of reduced net operating expenses of $100 million for 2013.”
Key Stats (on next page)…