Frontier Communications stock price target raised to $8 from $7 at CFRA
Frontier Communications stock price target raised to $8 from $7 at CFRA
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Frontier Communications stock price target raised to $8 from $7 at CFRA
Frontier Communications Corp., which bet big on landlines in recent years, shed one-quarter of its market value Wednesday after suspending its dividend to help it pay down debt. Shares tumbled 24% to $7.02 midday, contributing to a 84% decline over the past year. Analysts had been expecting Frontier to suspend its dividend as the company's debt has mounted and its core business has destabilized.
Shares of Frontier Communications Corp. tumbled 23% in active premarket trade Wednesday, enough to pace the decliners ahead of the open, after the communications services company suspended its dividend to make resources available to pay down debt. The previous annual dividend rate was $2.40 a share, which based on Tuesday's stock closing price of $9.24 implied a dividend yield of 25.97%, compared with the S&P 500's implied dividend yield of 1.88%, according to FactSet. Separately, FTR also reported late Tuesday a narrower-than-expected fourth-quarter loss and revenue that topped expectation, according to FactSet. Wells Fargo analyst Jennifer Fritzsche the dividend cut now frees the company to turn 100% of its attention to operations. "We note the dividend cut was very much a rip-the-Band-Aid-off moment, but we believe those funds can be better spent elsewhere," Fritzsche wrote in a note to clients. "We view [Frontier's] turnaround as very much a 'show me story,' and reiterate our market perform rating on the shares." The stock has dropped 79% over the past 12 months through Tuesday, while the S&P 500 has climbed 16%.
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Frontier Communications Corp. is getting pushback from creditors on a potential strategy for tackling nearly $18 billion in debt and coping with cord-cutting consumers.
A graphic look at selected stock activity for the week ended March 2, 2018. Includes AK Steel, Foot Locker, and L Brands.
Frontier Communications Corp. shed one-quarter of its market value Wednesday after suspending its dividend to help it pay down debt.
The fourth quarter of 2017 was a tough quarter for the major US wireline telecom companies such as CenturyLink (CTL), Windstream (WIN), and Frontier (FTR).
Frontier Communications (FTR) reports narrower-than-anticipated loss in first-quarter 2018 and surpasses revenue estimates.
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Frontier Communications (FTR) stock closed at $8.49 on April 19.
On April 19, Frontier Communications (FTR) was trading 6.8% above its 100-day moving average.
In 4Q17, Frontier spent $0.31 billion on capex, up from $0.3 billion in 4Q16.
Wall Street analysts expect an improved trend in Frontier’s broadband customer net additions.
Analysts expect a net loss of Frontier’s video customers in 1Q18 since it's continuing to face intense competition.
As of April 19, 17 six of the analysts actively tracking Frontier Communications (FTR) stock have rated it a “sell.”
In the US wireline space, Frontier Communications (FTR) had a market capitalization of ~$0.7 billion as of April 19.
Analysts expect Frontier’s consolidated adjusted EBITDA to fall ~2.5% YoY to ~$0.9 billion in 1Q18.
In 4Q17, Frontier had total revenue of $2.2 billion, a decline of ~8% on a YoY basis, and a decline of ~1.5% on a sequential basis.
Frontier (FTR) will publish its 1Q18 results on May 1. Let's look at analysts' performance expectations.
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Frontier Communications Corp. engages in the provision of communication services to urban, suburban, and rural customers. The firm offers voice, data, and video services and products on a standalone basis and as bundled or packaged solutions. It also provides data and Internet services, voice services, switched access services, video services, and Customer Premise Equipment. The company was founded in 1935 and is headquartered in Stamford, CT. (See Full Profile)
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