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Frontier Communications (FTR) Q3 Earnings: What's in Store?
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Frontier Communications Corporation is scheduled to report third-quarter 2017 results on Oct 31, after the closing bell.
Last quarter, the leading telecommunication company in the United States delivered a positive earnings surprise of 1.79%. However, the company’s earnings lagged the Zacks Consensus Estimate in two of the past four quarters, with an average miss of 22.89%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Over the past three months, share price of Frontier Communications has declined 27.7% compared with the industry’s decline of 6.1%.
Moreover, the company continues to suffer from the loss of legacy fixed telephony business to wireless, decline in access lines and wireless backhaul revenues due to customer migration to Ethernet solutions at lower price points. Reports about outages, bad telephone service and problems with billing raises concern.
Despite such headwinds, we are impressed with Frontier Communications’ focus on generating profits through customer retention, market share gain, product introductions, broadband expansion and improved sales and marketing initiatives. The company has been trying to derive benefits from the growing Business Service Segment. Frontier Communications’ Vantage TV service rollout in North Carolina is likely to leverage from its acquisition of Verizon Communications’ wireline assets in the state. By foraying into North Carolina, Frontier Communications will challenge major incumbents like AT&T Inc (T - Free Report) and Charter Communications (CHTR - Free Report) .
Earnings Whispers
Our proven model does not conclusively project a beat for Frontier Communications in the quarter under review. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Frontier Communications has an Earnings ESP of -6.14%. This is because the Most Accurate estimate is pegged at a loss of $1.18, while the Zacks Consensus Estimate is at a loss of $1.11. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontier Communications has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Frontier Communications Corporation Price and EPS Surprise
Here is a company from the broader Utilities sector, which houses Frontier Communications, which has the right combination of elements to post an earnings beat this quarter.
The company will release third-quarter 2017 financial results on Nov 9. The company’s earnings surpassed the Zacks Consensus Estimate in one of the previous four quarters.
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Frontier Communications (FTR) Q3 Earnings: What's in Store?
Frontier Communications Corporation is scheduled to report third-quarter 2017 results on Oct 31, after the closing bell.
Last quarter, the leading telecommunication company in the United States delivered a positive earnings surprise of 1.79%. However, the company’s earnings lagged the Zacks Consensus Estimate in two of the past four quarters, with an average miss of 22.89%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Over the past three months, share price of Frontier Communications has declined 27.7% compared with the industry’s decline of 6.1%.
Moreover, the company continues to suffer from the loss of legacy fixed telephony business to wireless, decline in access lines and wireless backhaul revenues due to customer migration to Ethernet solutions at lower price points. Reports about outages, bad telephone service and problems with billing raises concern.
Despite such headwinds, we are impressed with Frontier Communications’ focus on generating profits through customer retention, market share gain, product introductions, broadband expansion and improved sales and marketing initiatives. The company has been trying to derive benefits from the growing Business Service Segment. Frontier Communications’ Vantage TV service rollout in North Carolina is likely to leverage from its acquisition of Verizon Communications’ wireline assets in the state. By foraying into North Carolina, Frontier Communications will challenge major incumbents like AT&T Inc (T - Free Report) and Charter Communications (CHTR - Free Report) .
Earnings Whispers
Our proven model does not conclusively project a beat for Frontier Communications in the quarter under review. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Frontier Communications has an Earnings ESP of -6.14%. This is because the Most Accurate estimate is pegged at a loss of $1.18, while the Zacks Consensus Estimate is at a loss of $1.11. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontier Communications has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Frontier Communications Corporation Price and EPS Surprise
Frontier Communications Corporation Price and EPS Surprise | Frontier Communications Corporation Quote
Stock to Consider
Here is a company from the broader Utilities sector, which houses Frontier Communications, which has the right combination of elements to post an earnings beat this quarter.
TELUS Corporation (TU - Free Report) has an Earnings ESP of +4.91% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company will release third-quarter 2017 financial results on Nov 9. The company’s earnings surpassed the Zacks Consensus Estimate in one of the previous four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>