Earnings Preview: Frontier Communications

Frontier Communications FYBR is set to give its latest quarterly earnings report on Tuesday, 2024-11-05. Here's what investors need to know before the announcement.

Analysts estimate that Frontier Communications will report an earnings per share (EPS) of $-0.19.

Investors in Frontier Communications are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

Last quarter the company missed EPS by $0.35, which was followed by a 0.0% drop in the share price the next day.

Performance of Frontier Communications Shares

Shares of Frontier Communications were trading at $36.14 as of November 01. Over the last 52-week period, shares are up 76.16%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Frontier Communications

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Frontier Communications.

Analysts have given Frontier Communications a total of 5 ratings, with the consensus rating being Buy. The average one-year price target is $37.2, indicating a potential 2.93% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Shenandoah, ATN International and AT&T, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Shenandoah is maintaining an Buy status according to analysts, with an average 1-year price target of $26.0, indicating a potential 28.06% downside.
• The consensus among analysts is an Buy trajectory for ATN International, with an average 1-year price target of $30.0, indicating a potential 16.99% downside.
• The consensus among analysts is an Outperform trajectory for AT&T, with an average 1-year price target of $23.56, indicating a potential 34.81% downside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Shenandoah, ATN International and AT&T, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Frontier Communications ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom.

All You Need to Know About Frontier Communications

Frontier Communications Parent Inc offers a variety of services to residential and business customers over its fiber-optic and copper networks, including video, high-speed internet, advanced voice, and Frontier Secure digital protection solutions. It offers communications solutions to small, medium, and enterprise businesses.

Key Indicators: Frontier Communications's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Frontier Communications's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 2.66%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Frontier Communications's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -8.39%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Frontier Communications's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.37%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Frontier Communications's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.61%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Frontier Communications's debt-to-equity ratio stands notably higher than the industry average, reaching 2.19. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Frontier Communications visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.