Q3 Preview: Dividend Favorite Frontier (FTR) Could See Boost from Completed Verizon Acquisition (VZ, CTL, WIN, Q)
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Frontier Communications Corporation (NYSE: FTR) is trading slightly higher ahead of the company's third quarter earnings announcement, expected out before the market opens Monday, November 8, 2010. Shares are up 0.17% in the afternoon session.
The company is expected to report an EPS of $0.10 on revs of $1.41 billion. Last quarter, the company had an EPS of $0.19, excluding certain items, on revs of $516.1 million. Last year, the communications giant had an EPS of $0.17 on revs of $526.80 million.
Shares gained 8.8% through the quarter to $8.17 at the end of September. The stock is up 10.4% since then, and nearly 24% on the year.
FTR is trading for a forward P/E of 22x FY11 EPS estimates, a little expensive when compared to 17.5x for Qwest Communications (NYSE: Q) and 13x for CenturyLink, Inc. (NYSE: CTL).
Data from Bloomberg has 8 analysts with a Buy on FTR, 8 with a hold, and three suggesting to Sell the shares. The analyst price target average is $11, with a high of $15 and a low of $6.
Summary
Investors love the dividend on Frontier Communications, which, at $0.75, is currently yielding 8.3%. Should you have gotten into the stock early in 2010, you might be seeing a 10%+ yield.
Jim Cramer recommended to shares at the end of September, opting for CenturyLink or Windstream (NYSE: WIN) instead. Should you have done that, you would've missed out on an 11% move up in FTR, compared to 8.6% in CTL and just a 3.2% boost from WIN.
Although an earnings win or miss might not move the stock too much, look for info on residential and business customers and net adds of high-speed internet and video customers. Last quarter, the company added 3,400 high-speed and 3,800 video customers, but res/biz customers declined by 23,500.
The company should see a slight boost, as they expected to resume their marketing campaigns and promotions in Q310.
Frontier Communications is expected to release their Q310 earnings on Monday, November 8, 2010, at approximately 7:00am EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
The company is expected to report an EPS of $0.10 on revs of $1.41 billion. Last quarter, the company had an EPS of $0.19, excluding certain items, on revs of $516.1 million. Last year, the communications giant had an EPS of $0.17 on revs of $526.80 million.
Shares gained 8.8% through the quarter to $8.17 at the end of September. The stock is up 10.4% since then, and nearly 24% on the year.
FTR is trading for a forward P/E of 22x FY11 EPS estimates, a little expensive when compared to 17.5x for Qwest Communications (NYSE: Q) and 13x for CenturyLink, Inc. (NYSE: CTL).
Data from Bloomberg has 8 analysts with a Buy on FTR, 8 with a hold, and three suggesting to Sell the shares. The analyst price target average is $11, with a high of $15 and a low of $6.
Summary
Investors love the dividend on Frontier Communications, which, at $0.75, is currently yielding 8.3%. Should you have gotten into the stock early in 2010, you might be seeing a 10%+ yield.
Jim Cramer recommended to shares at the end of September, opting for CenturyLink or Windstream (NYSE: WIN) instead. Should you have done that, you would've missed out on an 11% move up in FTR, compared to 8.6% in CTL and just a 3.2% boost from WIN.
Although an earnings win or miss might not move the stock too much, look for info on residential and business customers and net adds of high-speed internet and video customers. Last quarter, the company added 3,400 high-speed and 3,800 video customers, but res/biz customers declined by 23,500.
The company should see a slight boost, as they expected to resume their marketing campaigns and promotions in Q310.
Frontier Communications is expected to release their Q310 earnings on Monday, November 8, 2010, at approximately 7:00am EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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