The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Frontier Communications met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped. GAAP earnings per share contracted.
Gross margins expanded, operating margins contracted, net margins shrank.
Frontier Communications logged revenue of $1.23 billion. The 13 analysts polled by S&P Capital IQ expected a top line of $1.24 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.06. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. Non-GAAP EPS of $0.06 for Q4 were 14% lower than the prior-year quarter's $0.07 per share. GAAP EPS of $0.03 for Q4 were 25% lower than the prior-year quarter's $0.04 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 91.2%, 160 basis points better than the prior-year quarter. Operating margin was 20.2%, 110 basis points worse than the prior-year quarter. Net margin was 2.0%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $4.82 billion. The average EPS estimate is $0.27.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 965 members out of 1,074 rating the stock outperform, and 109 members rating it underperform. Among 214 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Frontier Communications a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Frontier Communications is hold, with an average price target of $5.18.
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