NASDAQ$FYBR

Frontier Communications Parent Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Frontier reported strong operational results, including consumer revenue growth and EBITDA acceleration.

Frontier Communications reported third-quarter 2023 results, featuring the first consumer revenue increase as a new public company and an acceleration in EBITDA growth. The company's focus on fiber expansion and customer growth contributed to the positive results.

  • Passed 332,000 new fiber locations.
  • Added 79,000 fiber broadband customers, a 19% year-over-year increase.
  • Revenue reached $1.44 billion, with a net income of $11 million and Adjusted EBITDA of $526 million.
  • Capital expenditures totaled $671 million.

Headline financials

Total Revenue

$1.44B

Previous: $1.44B-0.6%
EPS (adj)

$0.05

Previous: $0.49-89.8%
Capital Expenditures

-$671M

No prior period
Free Cash Flow

-$267M

No prior period
Net Income

$11M

Previous: $120M-90.8%
Operating Income

$114M

Previous: $169M-32.5%
Gross Profit

$535M

Previous: $882M-39.3%
Cash & Equivalents

$948M

Previous: $230M+312.2%
Total Assets

$20.5B

Previous: $18.3B+12.2%
Stock-Based Comp

$30M

Previous: $19M+57.9%

Revenue & EPS history

Frontier Communications · Revenue · Quarterly

$1.44B

Q3 2023-0.6%vs Q3 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 operational and financial expectations for 2023, while updating the net cash interest payments guidance.

Tailwinds

  • Adjusted EBITDA of $2.11 - $2.16 billion.
  • New fiber passings of 1.3 million.
  • Cash capital expenditures of $3.00 - $3.20 billion.
  • Cash taxes of approximately $20 million.
  • Pension and OPEB expense of approximately $50 million (net of capitalization).

Headwinds

  • Net cash interest payments of approximately $700 million, an increase from prior guidance of $655 million, reflecting the $1.6 billion of debt raised in August 2023.
  • Economic uncertainty could limit access to capital.
  • Inflationary pressures on costs.
  • Potential disruptions in the supply chain.
  • Competition from other carriers.

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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