The 10-second takeaway
For the quarter ended March 31 (Q1), Frontier Communications met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins grew.
Frontier Communications recorded revenue of $1.21 billion. The 13 analysts polled by S&P Capital IQ hoped for revenue of $1.22 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 $0.05. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.05 for Q1 were 67% higher 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 90.9%, much about the same as the prior-year quarter. Operating margin was 20.8%, 110 basis points better than the prior-year quarter. Net margin was 4.0%, 190 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $4.81 billion. The average EPS estimate is $0.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 965 members out of 1,075 rating the stock outperform, and 110 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Frontier Communications a green thumbs-up, and 25 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 $5.00.
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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 position in any of the stocks mentioned. 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.