Frontier Communications (FTR) Misses Q4 EPS by 2c, Revenues Beat

Frontier Communications (NASDAQ: FTR) reported Q4 EPS of ($0.06), $0.02 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $2.12 billion versus the consensus estimate of $2.09 billion.

• Total fourth quarter revenue of $2.12 billion, stable sequentially
• Net loss of $219 million in the fourth quarter, with loss driven by goodwill impairment
• Adjusted EBITDA1 of $895 million, a sequential increase driven by improved Consumer revenue performance, continued strong expense management, and early benefits from the company’s transformation program
• Transformation program initiatives expanded further in the fourth quarter, and the program enters 2019 with strong momentum

“I am very pleased that fourth quarter results reflect our improving execution as well as initial benefits from our transformation program,” said Dan McCarthy, President and CEO. “A robust result in Consumer, together with strong expense management, drove a sequential increase in fourth quarter Adjusted EBITDA,” McCarthy added. “We continued to expand the scope of initiatives underway in our transformation program in the fourth quarter, and multiple teams are now scaling a range of solutions that were developed through transformation initiatives. I look forward to continued progress and expansion of the program over the course of 2019 and 2020 as we advance toward our targeted $500 million EBITDA benefit.”

Guidance

Frontier is issuing the following financial guidance for 2019:

• Adjusted EBITDA – $3.45 billion to $3.55 billion
• Capital expenditures – Approximately $1.15 billion
• Cash taxes – Less than $25 million
• Cash pension/OPEB – Approximately $175 million
• Cash interest expense – Approximately $1.475 billion
• Operating free cash flow – $575 million to $675 million

For earnings history and earnings-related data on Frontier Communications (FTR) click here.

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