5. Frontier Communications (FTR - Get Report), provides communications services predominantly to rural areas and small and medium-sized towns and cities. The company's services include a variety of voice, data, Internet, television services and products, some of which are available a la carte, while others are available as bundled or packaged solutions. The company offers services in data and Internet, access, directory and video segments.
Revenue reported for the first quarter of 2011 was $1.35 billion, vs. $519.9 million in the first quarter of the prior year. Meanwhile, Frontier closed the quarter with significant records, such as 83,000 new households with broadband availability and a $16 million increase in sequential cost synergies. Net income for the quarter increased to $54.7 million from $42.6 million in the year-ago quarter. Adjusted operating cash flow margin for the quarter stood at 47%.
The company recently declared its regular quarterly cash dividend of 18.75 cents per share for the second quarter of 2011, payable June 30. Looking ahead, the company plans to hold the dividend steady for the coming two years as it fully integrates the acquired wire lines. With a strong free cash flow of $252.8 million, up 66.3% year over year, the company is stable.Of the 18 analysts covering the stock, 28% rate it a buy and 56% rate it a hold. Analysts surveyed by Bloomberg have an average 12-month price target on the stock of $8.70, which is about 9.7% higher than recent levels.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts