Why Frontier Communications Corp. Shares Are Plunging Today
Shares of Frontier Communications (NASDAQ: FTR) are plunging today, down 15% as of 12:37 p.m. EDT, reversing yesterday's 7% gain.
The regional American telecom reported a mixed bag of second-quarter results ahead of the Wednesday surge. Analysts had been expecting a $0.91 net loss per share on revenue near $2.3 billion; Frontier hit the sales target but fell short of the Street's earnings projections with a $1.10 loss per share. Management lowered Frontier's EBITDA profit guidance for the full year from $4 billion to $3.8 billion, as expected. On the upside, Frontier CEO Dan McCarthy called the quarter an "inflection point" for his company, with better results ahead in the second half of 2017 and beyond.
That was the news behind Wednesday's surge. On Thursday, analyst firm Hilliard Lyons downgraded Frontier's stock from a neutral rating to underperform, reminding investors that the stock's earlier jump might not have much substance.
Source: Fool.com
