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A Fool Looks Back

By Rick Munarriz – Feb 23, 2013 at 8:00AM

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A lot of things happened during this holiday-shortened trading week.

There's never a dull moment for the regional telcos.

Frontier Communications (FTR) and Windstream (WINMQ) 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 (TSLA 0.08%) 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 (EXEL 2.05%) 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 (IMAX 5.60%) 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.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Exelixis, IMAX, and Tesla Motors. We Fools don't 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.

Stocks Mentioned

Windstream Holdings, Inc. Stock Quote
Windstream Holdings, Inc.
WINMQ
IMAX Stock Quote
IMAX
IMAX
$17.72 (5.60%) $0.94
Frontier Communications Stock Quote
Frontier Communications
FTR
Tesla Stock Quote
Tesla
TSLA
$194.86 (0.08%) $0.16
Exelixis Stock Quote
Exelixis
EXEL
$17.39 (2.05%) $0.35

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

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