Seeking Alpha
Profile| Send Message|
( followers)  

Frontier Communications Corporation (FTR) is scheduled to report its Q2 2012 results on July 31, 2012, after the bell. The street expects EPS and revenue of $0.05 and $1.24B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from FTR and the news from its closest competitors.

Frontier Communications Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.05 EPS, just below analyst estimates of $0.06.

Frontier Communications Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $0.05 based on 16 analysts' estimates, down from $0.06 a year ago. Revenue estimates are $1.24B, down from $1.32B a year ago. The median target price by analysts for the stock is $5.00.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On July 25, 2012, Frontier Communications Corp announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on September 28, 2012 to holders of record of common stock at the close of business on September 7, 2012.
  • On July 24, 2012, Frontier Communications Corp announced that it has signed a wholesale agreement with Hughes Network Systems, LLC. Frontier will distribute satellite-based broadband services, branded Frontier Broadband, that will deliver increased speed and capacity to households and small businesses within markets previously unserved or underserved by all broadband providers, including cable.
  • On June 18, 2012, Frontier Communications Corp announced that it has completed its previously announced debt tender offer and has applied the full Maximum Payment Amount of $500 million toward the repurchase of its 8.250% Senior Notes due 2014 (the 2014 Notes) and 7.875% Senior Notes due 2015 (the 2015 Notes).
  • On June 14, 2012, Frontier Communications Corp and The Berry Company, LLC, a local search services company, announced their continued partnership to produce FrontierPages through 2014.
  • On May 17, 2012, Frontier Communications Corp announced that it has commenced a registered offering of $500 million aggregate principal amount of senior notes due 2021.
  • On May 17, 2012, Frontier Communications Corp announced that it has priced its registered offering of $500 million aggregate principal amount of 9.250% senior notes due 2021 (Notes).
  • On May 8, 2012, Frontier Communications Corp announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on June 29, 2012 to holders of record of common stock at the close of business on June 8, 2012.
  • On April 16, 2012, Frontier Communications Corp announced the promotion of Daniel J. McCarthy to President of the Company. McCarthy retains the title of Chief Operating Officer (COO).
  • On February 16, 2012, Frontier Communications Corporation announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on March 30, 2012 to holders of record of common stock at the close of business on March 9, 2012.

Competitors

CenturyLink (CTL), Level 3 Communications (LVLT), AT&T (T), Verizon Communications (VZ), and Windstream (WIN) are considered major competitors for Frontier Communications and the table below provides the key metrics for these companies and the industry.

Frontier Communications Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)FTR Chart

FTR data by YCharts

Competitors' Latest Development

  • On July 25, 2012, Level 3 Communications, Inc. announced that it remain confident in its expectations for 20% to 25% adjusted EBITDA growth for fiscal 2012 from the starting point of $1.216 billion of pro forma Adjusted EBITDA for fiscal 2011.
  • On July 25, 2012, Nirvanix announced a strategic channel alliance with CenturyLink, Inc. that enables customers to access Nirvanix Cloud Storage Services at higher speeds while significantly reducing bandwidth costs.
  • On July 18, 2012, Level 3 Communications, Inc. announced that ESPN Brazil will use Level 3 Vyvx broadcast solutions infrastructure and managed services to optimize transmissions and provide integrated services for TV stations that carry its broadcasts in Brazil.
  • On July 16, 2012, Digital Realty Trust Inc and CenturyLink, Inc.'s Savvis Inc announced the completion of the joint venture acquisition of a 164,000-square-foot (15,236-square-meter) facility in Hong Kong.
  • On July 13, 2012, AT&T Inc announced that it has reached an agreement with the International Brotherhood of Electrical Workers on a one-year contract extension covering nearly 7,000 core wireline employees.
  • On July 5, 2012, Verizon Communications Inc. announced that Hydro and Verizon have entered into an agreement under which Verizon will deliver a managed global wide area network with integrated security and remote access solutions, an integrated partner firewall to enable third-party access to select business solutions and full professional service support.
  • On June 27, 2012, Level 3 Communications, Inc. announced that TVRL GmbH & Co. KG, which operates the music TV service Putpat, has selected Level 3 to support the company's growing need for high storage and availability requirements for various delivery formats, while ensuring rigorous content security and workflow optimization.
  • On June 26, 2012, Level 3 Communications, Inc. announced that it has been selected by ScaleMatrix, to provide secure, reliable connectivity between two of its primary data center facilities in San Diego, Calif., and Katy, Texas.
  • On June 21, 2012, CenturyLink, Inc. announced that it has won a contract renewal worth $2.1 million over the next five years to provide telecommunications services to the U.S. Army base at Fort Stewart, Ga. The contract is for one year with four one-year options.
  • On June 15, 2012, CenturyLink, Inc. announced that its wholly-owned subsidiary, Qwest Corporation, agreed to sell $400 million aggregate principal amount of 7.00% Notes due 2052.
  • On June 14, 2012, CenturyLink, Inc. announced that it has won a $233 million task order to provide primary managed data networking services over the next five years to the Social Security Administration (SSA) under the Networx Universal contract.
  • On June 13, 2012, Savvis, a CenturyLink company announced a strategic agreement with Hortonworks enabling Savvis to leverage Hadoop to offer cloud-based big data solutions for enterprises.
  • On June 7, 2012, Verizon Communications Inc. announced that its Board of Directors declared a quarterly dividend of $0.50 per outstanding share, unchanged from the previous quarter.
  • On June 4, 2012, Reuters reported that Verizon Communications Inc., is looking to cut its workforce by 1,700 people, or almost 1%, through a buyout offer for technicians and call-center employees.
  • On June 1, 2012, Verizon Communications Inc. announced a definitive merger agreement under which Verizon will acquire Hughes Telematics, Inc. (HTI) for $12.00 per share in cash, or a total of $612 million.
  • On May 15, 2012, AT&T Inc's AT&T Government Solutions announced that it has been selected as a prime vendor under the Tactical Communications Equipment and Services (TacCom) contract.
  • On May 15, 2012, Level 3 Communications, Inc. announced multiyear contract with European-based content provider Voxility. Under the terms of the agreement, Level 3 will provide more than 250 Gbps to Voxility's three datacenters, located in North America and Europe, providing a substantial amount of capacity to support the company's continued global growth.
  • On May 11, 2012, Reuters reported that AT&T Inc has held talks to buy Leap Wireless International, Inc. in recent months. These talks were serious enough for Leap Wireless to hire bankers to advise it on a potential deal.
  • On May 9, 2012, CenturyLink, Inc. announced that for the second quarter 2012 it expects, Operating Revenue to be in the range of $4.55 billion to $4.60 billion and adjusted diluted EPS to be $0.59 - $0.64. For fiscal 2012, it expects operating revenue to be in the range of $18.2 billion to $18.4 billion, adjusted diluted earnings per share (EPS) to be $2.35 - $2.55. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenues of $4.58 billion and EPS of $0.59 for the second quarter of 2012; revenues of $18.3 billion and EPS of $2.38 for fiscal 2012.
  • On May 7, 2012, CenturyLink, Inc.'s Savvis announced that FXall has renewed its hosting and infrastructure services agreement with Savvis and will take additional data center space to accommodate client demand and ongoing market growth.
  • On May 3, 2012, Level 3 Communications, Inc. reiterated fiscal 2012 guidance provided in fourth quarter 2011 call and expects 20% to 25% Adjusted EBITDA growth from the starting point of $1.216 billion of pro forma Adjusted EBITDA for 2011.

Technical Overview


The stock has a market capitalization of $3.58B and is currently trading at $3.59 with a 52 week range of $3.06 - $7.64. The stock's year-to-date performance has been -26.58%. It is currently trading below 20, 50 and 200 SMA. It has been trading in a downtrend channel since February 2011.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Frontier Communications