Seeking Alpha

Though Frontier's (FTR -4%) top and bottom-line numbers met estimates, the rural telco is...

Though Frontier's (FTR -4%) top and bottom-line numbers met estimates, the rural telco is selling off. The loss of another 51.8K customers could be a factor, though that number is a little better than Q2's 65.7K. Local/long distance revenue fell 8% Y/Y as Frontier's local loop base continues to wither, while data revenue was up slightly. Free cash flow fell 24% Q/Q to $215.3M, though Frontier's 2012 FCF guidance is unchanged at $900M-$1B. 2013 capex guidance has been set at $625M-$675M, down from 2012's $750M-$775M. (PR)

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Comments (1)
  • cognitorex
    , contributor
    Comments (150) | Send Message
     
    On the one hand you have capex, cash flow, gaining and losing customers and on the other you have a stock with a huge short position that gets played at earnings time. It also gets played as the ex dividend date approaches so the 4% drop may mean squat re fundamentals. I think there's a 80% chance that it'l exceed $4.68 before Dec 5 and at least a 20% chance it'l hit $4.78. If the institutional holders head for the exit that's when I will worry. That being said I sold off 40% of my holdings a few days ago because the stock was behaving funky and replaced it today less $.30. Net net I lost zero at the 18 cents down price. It's a doggie stock but 8% return is worth the headache.
    6 Nov 2012, 02:10 PM Reply Like
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