There's never a dull moment for the regional telcos.
Frontier Communications (NASDAQ:FTR) and Windstream (NASDAQ:WIN) posted quarterly results this week, and the reports weren't perfect. Both companies that cater to underserved markets in delivering landlines, Internet access, and other telecommunications services fell short of Wall Street's profit targets. However, instead of slashing their generous payouts -- the way a third rival did a week earlier -- both companies stuck to their current quarterly dividend rates.
Investors shouldn't be chasing yields alone. There's often a reason a company is sporting such a hefty payout rate. However, the coast appears to be clear here until we do this all again in three months.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- Tesla Motors (NASDAQ:TSLA) stumbled after the electric-car darling posted a wider-than-expected quarterly deficit. I guess the stock also failed to juice up enough between recharging stations.
- Exelixis (NASDAQ:EXEL) also posted a larger loss than analysts were expecting. Biotechs will do that, but Exelixis was coming off of back-to-back quarters of landing ahead of Wall Street's profit targets.
- Let's end this on a positive note. IMAX (NYSE:IMAX) posted better-than-expected results. The company behind bigger-than-life theatrical experiences posted an adjusted profit of $0.23 a share, blowing through the $0.16 analysts were modeling. The multiplex may not be hopping these days, but patrons are certainly showing up for super-sized IMAX screenings. That's the right way to fade to black.