5. Frontier Communications (FTR), 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV