Frontier Communications reported second-quarter 2014 results
wherein the bottom line was on par with the Zacks Consensus
Estimate while the top line surpassed the same. The poor show can
be attributed to lower residential customers along with increased
churn. We believe that the backhaul revenue pressure, integration
costs as well as higher financial leverage will continue to weigh
on the company s earnings. However, product introductions,
broadband expansion and cash flow management by operating expense
reduction should prove accretive. Additionally, changes in the
channel distribution structure and Frontier's relentless focus on
infrastructural development, enhancement of network speed and
shareholders' return bode well for long-term growth. We are
maintaining our Neutral recommendation on Frontier Communications.
Based in Stamford, CT, Frontier Communications Corporation is a
communications company providing services to rural areas and small
and medium-sized towns and cities. Frontier offers voice,
high-speed Internet, satellite video, wireless Internet data
access, data security solutions, bundled offerings, specialized
bundles for small businesses and home offices, and advanced
business communications access solutions for medium and large
businesses. It operates across 27 states with approximately 14,017
employees. The company also provides television services, which
allows access to various digital television channels featuring
movies, sports, news, music, and high-definition TV programming and
wireless data services. Formerly known as Citizens Communications
Company, Frontier Communications Corporation changed its name to
the present form in Jul 2008.
The company's customers include both residential and business.
Its services include access services local services long distance
services data and Internet services directory services television
and wireless services. Residential and business customers accounted
for approximately 42% and 46%, respectively, of the total revenue
in 2013. Regulatory services accounted for 12% of the total 2013
In Jul 2010, Frontier Communications had acquired Verizon
Communications Inc.'s local wireline operations in 14 states. With
this acquisition, Frontier has taken control of over 4.8 million
Verizon phone lines, trebling its size to become the largest
rural-only service provider in the United States.
In Apr 2012, Frontier announced the disposition of its one-third
stake in regional telecom carrier Mohave Wireless to Verizon
Frontier Communications Corporation (FTR): Read the
Full Research Report
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
FRONTIER COMMUN (FTR): Free Stock Analysis
To read this article on Zacks.com click here.