NASDAQ$FYBR

Frontier Communications Parent Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Frontier Communications accelerated fiber build out and reported second-quarter 2021 financial results.

Frontier Communications reported Q2 2021 financial results, showing progress in its fiber expansion strategy. The company accelerated its fiber build out, added consumer fiber net subscribers, and reduced consumer churn. Consolidated revenue was $1.62 billion, and operating income was $298 million.

  • Increased 2021 target to extend fiber network to more than 600,000 locations, with approximately 157,000 locations completed in the second quarter
  • Second-quarter revenue of $1.62 billion, Adjusted EBITDA of $633 million, and operating income of $298 million
  • Liquidity of approximately $1.5 billion to fund fiber network expansion
  • Plans to deploy fiber to reach 10 million locations by 2025

Headline financials

Total Revenue

$1.8B

Previous: $1.8B+0.0%
EPS (adj)

-$0.91

Previous: -$1.73+47.1%
Net Income

$4.58B

Previous: -$181M+2630.4%
Operating Income

$298M

Previous: $140M+112.9%
Gross Profit

$897M

Previous: $1.12B-19.6%
R&D Expense

$0.00

No prior period

Revenue & EPS history

Frontier Communications · Revenue · Quarterly

$1.8B

Q2 2021+0%vs Q2 2020
Beat estimate in 1 of 3 quarters(33%)
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 updated its operational and financial guidance expectations for 2021, primarily in connection with the acceleration of its fiber build.

Tailwinds

  • Adjusted EBITDA of $2.4-$2.5 billion, consistent with previous guidance, despite a negative non-cash impact of approximately $50 million resulting from fresh start accounting adjustments
  • Cash capital expenditures of approximately $1.8 billion, higher than previous guidance primarily related to the Company’s accelerated fiber build plans in 2021 and 2022
  • Fiber build to at least 600,000 locations in 2021, up from previous guidance of 495,000 locations in 2021
  • Cash taxes of approximately $50 million, consistent with previous guidance
  • Cash interest payments of approximately $365 million, consistent with previous guidance

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———
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