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Understanding Frontier’s Recent Bounce

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FTR shares rose over 20% last week

Shares of Frontier Communications (FTR) rose 20.7% last week (ended May 19, 2017). The stock has been in a downward spiral for the past 12 months, and it fell 17% in the previous week (ended May 12), after the company announced its 1Q17 results.

FTR’s revenue rose 74% YoY (year-over-year) to $2.4 billion in 1Q17, primarily due to its acquisition of Verizon Communications’ (VZ) wireline assets.

For 1Q17, the company posted net income of -$129 million, or -$0.11 per share, as compared to the analysts’ consensus estimate of -$0.05 per share. Investors were also surprised when the company decided to cut its dividend by 62%, from $0.11 per share to $0.04 per share, further impacting the stock’s price.

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FTR stock fell 27% in March 2017

FTR’s stock fell over 27% in March 2017. On March 22, 2017, investment bank Goldman Sachs (GS) downgraded FTR shares based on concerns over the company’s dividend sustainability, which led to a 10% fall that day.

The stock fell 17% in February 2017 and ~20% in 2016, and the stock has returned -71% over the trailing-12-month period. Notably, the stock fell 10.9% on February 28, 2017, after the firm announced disappointing 4Q16 results.

According to an AlphaOne Report, however, there have been positive news reports about FTR over the past few days. AlphaOne tracks media coverage of publicly traded stocks and ranks stocks on a scale from -1 to 1. Currently, AlphaOne assigned FTR a media sentiment score of 0.23 and an impact score of 94 out of 100 to FTR.

A high impact score suggests that media coverage might impact FTR’s stock price over the next few days.

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