Please ensure Javascript is enabled for purposes of website accessibility

Why Frontier Communications Stock Fell Wednesday

By Daniel Sparks - Jun 12, 2019 at 4:19PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One credit analyst downgraded certain Frontier Communications bonds.

What happened

Shares of Frontier Communications (FTR) fell on Wednesday, sliding as much as 13%. As of 3:36 p.m. EDT, the stock was down 12.2%.

The stock's decline follows an analyst's decision to downgrade some of the regional telecom company's bonds.

So what

JPMorgan credit analyst Thomas Egan expressed concerns for certain Frontier Communications bonds on Wednesday, saying management needs to follow through with its plan to deliver cash flow with the help of cost cuts. Otherwise, the company's board may "push for an accelerated solution before the company gets to the $2.7bn maturity wall in 2022," wrote the analyst via (Street Insider).

A chalkboard sketch of a chart showing a downward-trending line

Image source: Getty Images.

Now what

Investors' patience has been tested recently. Shares have lost more than 40% over the past three months, with a big portion of that decline coming after Frontier reported a worse-than-expected loss per share for its first quarter.

But Frontier said in its first-quarter update that the company was on track with its transformation program. In addition, management maintained its full-year outlook for adjusted EBITDA, capital expenditures, operating cash flow, and other key metrics.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Frontier Communications Corporation Stock Quote
Frontier Communications Corporation
FTR

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.