Morgan Stanley Sees Continued Broadband Momentum as Positive for Frontier Communications
In a report published Tuesday, Morgan Stanley analyst Simon Flannery reiterated an Equal-Weight rating on Frontier Communications (NASDAQ: FTR).
In the report, Morgan Stanley noted, “Frontier continued the momentum in broadband, with +28k broadband net adds in the fourth quarter (or, +112k for the year), despite greater cable competition, and management believes they can replicate these results going forward. Revenues of $1,180M (-3.4% y/y) were better than our estimate of $1,169M and consensus' $1,177M, with ‘Other Revenue' (including CPE sales) coming in ~$7M higher than our estimate. EBITDA (ex. pension) of $570M (48.3% margins) were better than our and consensus' $549M, benefiting from cost cutting initiatives ($93M v. the annual goal of $100M for 2013).”
Frontier Communications closed on Monday at $4.59.
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