Frontier Communications (NAS: FTR) reported earnings on Feb. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Frontier Communications beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Gross margins grew, operating margins improved, and net margins shrank.
Frontier Communications recorded revenue of $1.28 billion. The 11 analysts polled by S&P Capital IQ anticipated sales of $1.27 billion on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $1.36 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.07. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.06 per share on the same basis. GAAP EPS of $0.04 for Q4 were 20% lower than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 90.6%, 2,420 basis points better than the prior-year quarter. Operating margin was 21.3%, 280 basis points better than the prior-year quarter. Net margin was 3.3%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $4.96 billion. The average EPS estimate is $0.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 985 members out of 1,079 rating the stock outperform, and 94 members rating it underperform. Among 233 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 212 give Frontier Communications a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Frontier Communications is outperform, with an average price target of $6.61.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Frontier Communications fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
Add Frontier Communications to My Watchlist.
At the time thisarticle was published Seth Jayson owned shares of the following at the time of publication: Frontier Communications. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.