NASDAQ$FYBR

Frontier Communications Parent Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Frontier Communications reported its Q1 2023 results, achieving EBITDA growth for the first time in five years and adding a record number of fiber broadband customers.

Frontier Communications reported a revenue of $1.44 billion and a net income of $3 million. The company achieved EBITDA growth for the first time in five years, driven by strong operational performance and increased focus on working capital management. Frontier added a record 87,000 fiber broadband customers and raised its cost savings target by $100 million one year ahead of plan.

  • Delivered year-over-year EBITDA growth for the first time in more than five years.
  • Added a record 87,000 fiber broadband customers.
  • Revenue of $1.44 billion, net income of $3 million and Adjusted EBITDA of $519 million.
  • Raised cost savings target by $100 million one year ahead of plan.

Headline financials

Total Revenue

$1.44B

Previous: $1.45B-0.5%
EPS (adj)

$0.01

Previous: $0.26-96.2%
Net Income

$3M

Previous: $65M-95.4%
Operating Income

$143M

Previous: $121M+18.2%
Gross Profit

$898M

Previous: $894M+0.4%
Cash & Equivalents

$1.13B

Previous: $1.3B-12.9%
Total Assets

$19.4B

Previous: $16.8B+15.8%
Stock-Based Comp

$24M

Previous: $15M+60.0%

Revenue & EPS history

Frontier Communications · Revenue · Quarterly

$1.44B

Q1 2023-0.5%vs Q1 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Frontier Communications · $2.38B total across 4 segments · Q3 2020

  • Consumer
    $859M-8.9%
  • Data & Internet
    $838M
  • Voice Services
    $500M
  • Video Services
    $186M

Forward guidance

Frontier reaffirmed its 2023 guidance for Adjusted EBITDA, Fiber build, Cash taxes, Pension and OPEB expense, and Cash pension and OPEB contributions, while updating guidance for capital expenditures and interest expense.

Tailwinds

  • Adjusted EBITDA of $2.11 - $2.16 billion
  • Fiber build of 1.3 million new locations
  • Cash taxes of approximately $20 million
  • Pension and OPEB expense of approximately $50 million
  • Cash pension and OPEB contributions of approximately $125 million

Headwinds

  • Cash capital expenditures of $3.00 - $3.20 billion, an increase from prior guidance of $2.80 billion.
  • Net cash interest payments of approximately $655 million, an increase from prior guidance of $630 million.
  • Higher inventory levels
  • Fiber build costs
  • Debt raised in March 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

+0.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.5%

Avg return

30 days after

50%

9 / 18 earnings

Positive

+12.1%

Q4 2023

Best reaction

-12.8%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025+0.3%+0.2%+0.4%
Q2 2025+0.3%+0.2%+1.6%
Q1 2025+0.1%-0.5%+1.5%
Q4 2025+0.0%+0.5%+0.0%
Q3 2024-1.0%-2.6%-2.6%
Q2 2024-9.8%-5.0%-0.1%
Q1 2024+9.5%+5.6%+11.1%
Q4 2023+12.1%+10.2%+8.3%
Q3 2023+6.8%
Q2 2023-0.6%
Q1 2023-12.8%
Q4 2022-1.4%
Q3 2022-8.3%
Q2 2022+3.6%
Q1 2022-4.0%
Q4 2021+3.1%
Q3 2021+3.9%
Q2 2021-0.5%
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q4 2019
Q1 2020
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010

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