NASDAQ$FYBR

Frontier Communications Parent Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Frontier Communications reported a revenue increase and strong EBITDA growth, driven by record fiber broadband customer additions and ARPU growth.

Frontier Communications reported positive Q2 2024 results, marked by revenue growth, record fiber broadband net additions, and a significant increase in fiber broadband revenue. The company also raised the low end of its Adjusted EBITDA guidance following a strong first half performance.

  • Added a record 388,000 fiber passings, reaching 7.2 million total locations passed with fiber.
  • Achieved record 92,000 fiber broadband customer additions, resulting in an 18.6% year-over-year growth.
  • Revenue increased by 2.1% year-over-year to $1.48 billion, driven by growth in fiber-based products.
  • Adjusted EBITDA increased by 5.1% year-over-year to $560 million, driven by revenue growth and cost savings.

Headline financials

Total Revenue

$1.48B

Previous: $1.45B+2.1%
EPS (adj)

-$0.49

Previous: -$0.01-4800.0%
Capital Expenditures

-$626M

No prior period
Free Cash Flow

-$252M

No prior period
Net Income

-$123M

Previous: -$2M-6050.0%
Operating Income

$91M

Previous: $115M-20.9%
Gross Profit

$566M

Previous: $921M-38.5%
Stock-Based Comp

$11M

Previous: $27M-59.3%

Revenue & EPS history

Frontier Communications · Revenue · Quarterly

$1.48B

Q2 2024+2.1%vs Q2 2023
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 updated its Adjusted EBITDA, net cash interest expense, and cash taxes guidance for 2024, while reaffirming all other operational and financial expectations.

Tailwinds

  • Adjusted EBITDA of $2.22 - $2.25 billion, an increase to the low end of the range from prior guidance of $2.20 - $2.25 billion
  • Fiber passing additions of 1.3 million
  • Cash capital investment of $3.00 - $3.20 billion
  • Pension and OPEB expense of approximately $40 million (net of capitalization)
  • Cash pension and OPEB contributions of approximately $125 million

Headwinds

  • Net cash interest payments of approximately $760 million, an increase from prior guidance of $750 million, reflecting the fiber securitization offering and term loan refinancing completed in July 2024
  • The company faces risks related to its significant indebtedness and ability to incur more debt in the future.
  • Economic uncertainty, volatility in financial markets, and rising interest rates could limit access to capital.
  • Inflationary pressures on costs, including tight labor markets and increased fuel and electricity costs, could adversely impact financial condition.
  • Potential information technology or data security breaches and competition from other providers pose ongoing challenges.

Historical earnings impact

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

Avg. return before/after earnings

Based on 8 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+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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