Why Frontier Communications' Shares Got Crushed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Frontier Communications (Nasdaq: FTR  ) have gotten crushed today by as much as 11% after reporting earnings.

So what: Revenue in the quarter was $1.3 billion, which resulted in net income of $67 million, or $0.07 per share. Those results were right on target with what the market was expecting. Free cash flow in the third quarter was $215.3 million.

Now what: Frontier narrowed its customer losses, losing just under 52,000 customers during the quarter. That's less than each of the past two quarters. Full-year guidance calls for free cash flow in the range of $900 million to $1 billion. Frontier is a popular dividend play, so don't miss fellow Fool Eric Bleeker's breakdown of the results by clicking here.

When it comes to dividend yields, you won't find many higher than Frontier Communications' yield. While its juicy dividend is tempting, every Frontier investor has to understand that it's not a sure thing. A huge acquisition has transformed the company forever. Will the move bear fruit, or are investors destined for another disappointing dividend cut? In this premium research report on Frontier Communications, we walk you through all of the key opportunities and threats facing the company. Better yet, you'll receive a full year of updates to boot. Click here to learn more.


 

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