Why Frontier Communications (FTR) Is Tanking Today

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Frontier Communications Corp (NASDAQ:FTR) shares are plummeting Tuesday as the company missed its quarterly expectations by a wide margin.

Why Frontier Communications (FTR) Is Tanking TodayIn its earnings call, the telecommunications company reported a loss of 12 cents per share, which is more than twice as wide as the five cents per share that analysts were expecting.

“Results for the fourth quarter were impacted by our intensified efforts to resolve acquired accounts in California, Texas and Florida that we have determined to be non-paying,” CEO Dan McCarthy said in a statement.

Revenue was also underwhelming but slightly closer to Frontier Communication’s projections at $2.409 billion — a 70.5% rise year-over-year — versus the $2.5 billion that Wall Street expected, according to analysts polled by Thomson Reuters.

On an adjusted basis (excluding special items), the company’s loss was only four cents per share, which is a cent wider than the three cents per share than what analysts had anticipated.

Customer revenue amounted to $2.21 billion, which marked an 83.1% gain year-over-year. Switched access and subsidy revenues were $199 million, down 3.4% year-over-year.

Frontier Communication also updated its 2017 guidance, now predicting capital expenditures in the range of $1 billion to $1.25 billion. Meanwhile, adjusted cash flow will be in the range of $800 million to $1 billion.

The company also said that cash taxes will be in the range of $0 to $50 million over the course of the year.

FTR stock lost 10.6% during regular trading hours Tuesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/02/frontier-communications-corp-ftr/.

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