Quantcast

Why Frontier Communications Stock Fell Wednesday


What happened

Shares of Frontier Communications (NASDAQ: FTR) fell on Wednesday, sliding as much as 13%. As of 3:36 p.m. EDT, the stock was down 12.2%.

The stock's decline follows an analyst's decision to downgrade some of the regional telecom company's bonds.

So what

JPMorgan credit analyst Thomas Egan expressed concerns for certain Frontier Communications bonds on Wednesday, saying management needs to follow through with its plan to deliver cash flow with the help of cost cuts. Otherwise, the company's board may "push for an accelerated solution before the company gets to the $2.7bn maturity wall in 2022," wrote the analyst via ( Street Insider ).

A chalkboard sketch of a chart showing a downward-trending line

Image source: Getty Images.

Now what

Investors' patience has been tested recently. Shares have lost more than 40% over the past three months, with a big portion of that decline coming after Frontier reported a worse-than-expected loss per share for its first quarter.

But Frontier said in its first-quarter update that the company was on track with its transformation program. In addition, management maintained its full-year outlook for adjusted EBITDA , capital expenditures, operating cash flow, and other key metrics.

10 stocks we like better than Frontier Communications
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Frontier Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Stocks
Referenced Symbols: FTR



More from Motley Fool

Subscribe







Motley Fool
Contributor:

Motley Fool

Market News, Investing












Research Brokers before you trade

Want to trade FX?