Frontier and Its 13% Fall Last Week
Frontier stock fell again last week
Frontier (FTR) stock fell 13.1% in the week ended February 9, 2018, to close at $6.81. Frontier is now trading 12% above its 52-week low of $6.08 and 86% below its 52-week high of $51.30. The stock fell 84% in 2017 and 86% in the trailing 12-month period. Frontier has seen a YoY (year-over-year) decline in revenue for seven consecutive quarters after it bought Verizon’s CTF (California, Florida, and Texas) assets in April 2016 for $10.5 billion.
Although FTR gained access to 3.3 million voice connections as well as 1.2 million FiOS customers and more than 2 million broadband subscribers, the deal didn’t result in additional revenue for Frontier. In fact, FTR lost subscribers every month after the acquisition.
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FTR had to cut its dividend per share from $0.11 to $0.04 in 1Q17, further driving the stock down. Although FTR has been grappling with issues over the last 18 months, the recent decline in the stock was a result of the sell-off seen in the overall market.
FTR stock rose last month
The recent decline in the last few days means FTR stock has generated marginal returns in 2018, despite increasing 21% in January 2018. Analysts expect FTR’s revenue to fall 8.3% YoY in 4Q17 and 6.8% YoY in 1Q18.