|Bid||7.2800 x 1100|
|Ask||7.2900 x 2200|
|Day's range||7.2200 - 7.8399|
|52-week range||6.0800 - 21.0000|
|PE ratio (TTM)||N/A|
|Earnings date||30 Jul 2018 - 3 Aug 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||8.77|
Investors in Frontier Communications (FTR) need to pay close attention to the stock based on moves in the options market lately.
Frontier Communications Corp. and its bondholders are back at the negotiating table after the debt-laden telephone service company’s asset auction failed to generate an acceptable price, people with knowledge of the matter said. The company, which serves small towns and midsize cities, received multiple bids for landline assets in Florida this month but decided not to sell because none of the offers were high enough, said the people, who asked not to be identified because the matter is private. Struggling under a debt load that’s more than 23 times the size of its market capitalization, Frontier has been considering a sale of landline assets in California, Florida and Texas since at least February.
Frontier (FTR) peer Windstream Holdings (WIN) stock fell ~9.5% last week to close at $1.49. Windstream stock has fallen 67% in the last 12 months and -7.5% in the last month. It fell 73% in 2017. WIN is trading 16% above its 52-week low of $1.28 and 69% below its 52-week high of $4.84.
Frontier (FTR) stock fell 20% last week (ended May 11), to close at $9.03. Frontier stock has returned -50% in the last 12 months and 1.8% in the last month. It fell 84% in 2017. Frontier is trading 49% above its 52-week low of $6.08 and 61% below its 52-week high of $23.10.
Frontier Communications Corporation is scheduled to present at the 46th Annual J.P. Morgan Global Technology, Media and Communications Conference on Tuesday, May 15, 2018 in Boston, Mass.
The consumer stampede to streaming media from traditional broadcasters is claiming an unexpected victim: high-yield bond investors. Telecommunications, cable and satellite companies have borrowed hundreds of billions of dollars in junk debt to build networks that would allow them to dominate their markets for decades to come. The proliferation of internet-based providers is upending that expectation, forcing investors to question the safety of bonds they bought from companies such as satellite broadcaster Dish Network Corp., cable giant Charter Communications Inc. and landline telecommunications company Frontier Communications Corp.
In this series, we’ll look at the top tech stock gainers last week. Frontier (FTR) stock rose almost 35% in the week ended May 4 to close at $11.34. The stock then fell 6.9% on May 7, 2018, and has generated returns of -52% in the last 12 months and 37% in the last month after falling 84% in 2017. FTR is trading 74% above its 52-week low of $6.08 and 55% below its 52-week high of $23.25.
Frontier is now trading at a 1.9% premium to its consensus median target estimate. On May 1, Frontier stock was trading at $8.15, 1.7% below its 20-day moving average of $8.29. The stock was trading 2.1% above its 50-day moving average of $7.98 and 2.4% above its 100-day moving average of $7.96.
The losses of broadband subscribers and video subscribers were much less than those of a year ago. Dave Novosel, CFA, has 27 years of experience in credit analysis, as Head of Investment Grade Research at Banc One Capital Markets and as an analyst at Everen Securities and Metropolitan Life. First of all, the average revenue per user improvement was attributable mainly to the adoption of the new revenue recognition standard ASC 606.
Frontier (FTR) has risen 20.6% on a year-to-date (or YTD) basis as of May 1. In comparison, CenturyLink generated a return of 14.4% YTD. In the US wireline space, Windstream fell 21.1%. AT&T (T) and Verizon (VZ), Frontier’s peers in the telecommunications industry, fell 14.0% and 5.5%, respectively, during the same period.
Frontier’s (FTR) operating cash flows were $251 million in 1Q18, while its capital expenditure was $297 million. More than 70% of the capital expenditure went towards revenue-generating and productivity-enhancing programs. Operating free cash flow was -$46 million in 1Q18.
Adjusted EBITDA exceeded the Wall Street expectations of $900 million. The adjusted EBITDA margin rose 210 basis points in 1Q18 on a YoY basis, mainly driven by cost savings initiatives. Frontier’s focus on cost savings has helped the company to reduce its operating expenses and improve its profitability.
Frontier Communications Corporation announced that its Board of Directors has declared a regular and final quarterly dividend on Frontier’s 11.125% Mandatory Convertible Preferred Stock, Series A , of $2.78125 per share .
Frontier (FTR) has been trying to retain its customers and maintain a lower churn rate in the highly competitive telecom sector. In 1Q18, Frontier’s customer churn rate came in at 1.9%, which was better than the preceding quarter’s churn rate of 2.0% and the year-ago quarter’s churn rate of 2.4%. Frontier’s improvement in churn rate was driven by the CTF (California, Texas, and Florida) FiOS market.
Technical indicators help investors predict stock trends. Technical aspects are crucial for traders and investors as they make market entry and exit decisions. The two most often used technical indicators are the relative strength index (or RSI) scores and moving averages. Let’s now analyze how CenturyLink (CTL) stock has performed recently and compare its performance to other telecom (or telecommunication) firms.
Frontier Communications (FTR) reported its 1Q8 results on May 1. The company’s revenues came in at $2.199 billion in 1Q18, exceeding the Wall Street expectations of $2.160 billion. The improving subscriber trends in the CTF markets also led to its first positive net additions in the FiOS broadband customer base in the quarter.
As of April 25, 19 analysts from different brokerage firms actively track CenturyLink (CTL) stock. One of these analysts rated the stock as a “sell,” 11 rated the stock as a “hold,” and seven rated the stock as a “buy.” Around 58% of analysts gave the telecom company a “hold” recommendation. Analysts’ median target price for CenturyLink stock was $19.00 as of April 25.
Frontier (FTR) started 2018 with a bang and delivered better-than-expected 1Q18 results on May 1. The company exceeded Wall Street expectations for revenues and posted narrower-than-expected losses in the quarter. Frontier reported an adjusted net loss of $45 million, which was narrower than the adjusted loss of $91 million in 1Q17.
Charter Communications (CHTR) has posted YoY (year-over-year) growth in its top line for the past few quarters. Charter’s revenue increased ~4.9% YoY on a pro-forma basis to reach $10.7 billion in 1Q18, which was in line with Wall Street’s expectations. This significant YoY increase in total revenue was primarily due to strong growth in the residential and commercial components as it integrates the Time Warner Cable and Bright House Networks acquisition. Charter reported its 1Q18 results on April 27, 2018.
As of April 25, AT&T (T) was the largest US telecom player by market capitalization at ~$216.2 billion, followed by Verizon (VZ) at ~$204.4 billion. In the US wireline space, CenturyLink (CTL) has a market capitalization of ~$20.0 billion, as the below chart shows. Meanwhile, this metric for Windstream (WIN) and Frontier (FTR) was ~$0.3 billion and ~$0.7 billion, respectively.
CenturyLink (CTL) stock rose 13% in April to close at $18.58 on April 30. CTL stock has returned -28% in the last 12 months and 4.8% in the last five trading days. It fell 22% in 2017.
The Texas, Florida, and California FiOS markets finally saw more subscribers signing on than signing off, resulting in a smaller loss than expected.