Frontier stock gained in after-hours trading
Frontier Communications (FTR) delivered mixed first-quarter results on April 30. The company’s revenue was almost in line with estimates, but its losses were more than analysts had expected in the quarter, which led to a 17.4% fall in its stock after hours. However, the company’s losses improved significantly from the previous year’s quarter. Its stock closed the trading day with a rise of 5.2% to $2.85 on April 30.
Frontier stock has risen 19.75% YTD (year-to-date) as of April 30. Frontier gained the most among its peers in the telecommunications space YTD. In comparison, AT&T (T), Verizon (VZ), and T-Mobile (TMUS) rose 12.1%, 3.8%, and 14.8%, respectively. Sprint (S), however, fell 4.12% in the same period.
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Frontier’s earnings and revenue
Frontier reported adjusted net earnings of -$19 million in the first quarter of 2019. Its net EPS in the first quarter were -$0.18, missing analysts’ expectation by $0.08. Meanwhile, its EPS were much better than -$0.58 in the previous year’s quarter. Its losses improved on the back of its improved expense management in the quarter. The company also benefited from its transformation program.
The telecommunications company delivered revenue of $2.1 billion in the quarter, in line with analysts’ consensus estimate but a fall of 4.5% from the previous year’s quarter due to lower customer and subsidy revenues.