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Why Frontier and Windstream Stocks Continued to Fall in June

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Frontier Communications

Frontier Communications stock (FTR) declined 30% in June to close at $5.36. The stock is currently trading at $4.99, which is 1.4% above its 52-week low of $4.92 and 73% below its 52-week high of $18.21. FTR has fallen more than 70% in the last 12 months after falling 84% in 2017.

FTR fell 18% in the last week of June due to CFO R. Perley McBride’s resignation. McBride is to serve as CFO until August 31 to facilitate a smooth transition. Investors believe FTR is struggling with its huge debt load of $17 billion. Plus, the firm was also unable to sell its CTF (California, Texas, and Florida) assets, which it acquired from Verizon (VZ) for $10.5 billion in 2016.

Analysts expect FTR’s revenue to decline 5.9% YoY (year-over-year) to $8.59 billion in fiscal 2018 and 4% YoY to $8.25 billion in fiscal 2019.

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Windstream Holdings

Peer telecom company Windstream Holdings (WIN) fell 20% in June to close at $5.27. The stock is currently trading at $5.24, which is 2.1% above its 52-week low of $5.13 and 74% below its 52-week high of $20. Similar to FTR, Windstream’s shares have declined over 73% in the last 12 months after falling 73% in 2017.

Analysts expect Windstream’s revenue to decline 4.6% YoY (year-over-year) to $5.73 billion in fiscal 2018 and 3.5% YoY to $5.53 billion in fiscal 2019.

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