#2 - Frontier Communications (NASDAQ:FTR)
Sector: Communication Services
Frontier Communications (NASDAQ:FTR) stock is down more than 50% in 2020. FTR stock got a modest bump when Frontier announced a restructuring plan. As part of the restructuring, Frontier will file for a Chapter 11 bankruptcy by April 14. According to the restructuring plan, the company anticipates receiving a confirmation of the Chapter 11 Plan within 120 days after filing.
There is no question that Frontier is taking a proper step to lower its existing debt. However, as analysts digest the plan, they are becoming skeptical of the company’s ability to execute the plan in a post-Coronavirus environment.
Frontier’s decline began in 2016. That’s when the company purchased Verizon’s (NYSE:VZ) wire line business in three states. Frontier’s revenue has dropped for the last 14 consecutive quarters. In 13 of those quarters, the company also posted negative earnings per share (EPS). This might be understandable if Frontier was a startup company. It’s not. And the company is showing an eroding customer base.
Only four analysts are currently covering FTR stock. They give the stock a 12-month price target of $1.39. However, with two of them issuing sell ratings (which rarely happens) and two offering a hold rating (which can be interpreted as a sell signal) it’s hard to take much stock in that price target.
Prior to announcing its restructuring plan, Frontier announced plans to sell operations and assets in Washington, Oregon, Idaho, and Montana.
About Frontier Communications
Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States. It offers broadband, video, voice, and other services and products through a combination of fiber and copper-based networks to consumer customers. The company also provides Ethernet and traditional circuit-based services; software defined wide area network, managed Wi-Fi and cloud IT solutions, voice and Unified Communications as a Service (UCaaS), and Voice over Internet Protocol (VoIP) services, as well as hardware and network solutions and services to small and medium business, and large enterprises.
Read More - Current Price
- $0.06
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
