Why Frontier Communications Stock Fell Wednesday
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.
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).
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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.
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