The 10-second takeaway
For the quarter ended June 30 (Q2), Frontier Communications beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Gross margins improved, operating margins improved, net margins dropped.
Frontier Communications logged revenue of $1.26 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.25 billion on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $1.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.02 for Q2 were 33% lower than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 90.8%, 30 basis points better than the prior-year quarter. Operating margin was 23.5%, 390 basis points better than the prior-year quarter. Net margin was 1.4%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.23 billion. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $4.98 billion. The average EPS estimate is $0.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 983 members out of 1,086 rating the stock outperform, and 103 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 180 give Frontier Communications a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Frontier Communications is outperform, with an average price target of $5.04.
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Seth Jayson owned shares of the following at the time of publication: Frontier Communications. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.