Frontier's CEO Celebrates Turnaround With Revenue Growth and Customer Base Expansion
Portfolio Pulse from Anusuya Lahiri
Frontier Communications Parent, Inc (NASDAQ:FYBR) reported a 1.5% year-on-year revenue growth to $1.46 billion, beating analyst estimates. EPS was $0.00, surpassing the expected loss. Growth was driven by fiber-based products and an 18% increase in fiber broadband customers. The company also reiterated its FY24 EBITDA outlook of $2.20 billion to $2.25 billion. FYBR shares rose 7.29% to $25.75. The stock is also part of Invesco S&P 500 Equal Weight Communication Services ETF (NYSE:RSPC) and SPDR S&P Telecom ETF (NYSE:XTL).

May 03, 2024 | 5:56 pm
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POSITIVE IMPACT
Frontier Communications reported higher than expected Q1 revenue and EPS, driven by fiber product growth and customer base expansion.
The positive earnings report and the achievement of revenue growth for the first time since 2015, along with a significant increase in fiber broadband customers, are likely to boost investor confidence and drive short-term stock price appreciation.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Invesco S&P 500 Equal Weight Communication Services ETF includes FYBR, which reported strong Q1 earnings, potentially impacting the ETF's performance.
Given FYBR's positive earnings report and its inclusion in RSPC, the ETF might experience indirect positive effects. However, the impact may be diluted due to the diversified nature of the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
SPDR S&P Telecom ETF, which includes FYBR, may benefit from FYBR's reported revenue growth and positive earnings, influencing the ETF's performance.
FYBR's strong performance in Q1 could positively influence XTL's performance due to its inclusion in the ETF. The overall impact might be moderated by the ETF's portfolio diversification.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50