After markets closed on Monday, Frontier Communications (NASDAQ: FTR) reported the results of their 2nd quarter. The results included financial information pertaining to the company’s acquisition of Verizon’s customers within Florida, Texas and California. The company elevated the forecast of their annual cost synergies from $700 million to $1.25 billion. The company’s president and CEO, Dan McCarthy, also confirmed that the company would continue to upgrade its broadband capabilities and expand their new Vantage service to more customers.
The company expects to add an additional 1.5 million 50 MBPS or higher households over the next year. Frontier’s Q2 EPS equated to -$0.02, which beat analysts expectations by $0.01. However, revenues of $2.6 Billion missed expectations by $140 million. With the help of the Verizon acquisition, the company managed to double revenues. When looking at legacy operations solely, revenues fell a little over 3%.
When analyzing the company’s growth year-over-year, residential customers elevated from 3.28 million a year ago to 5.24 million at the end of the last quarter. Revenue from residential customers increased from $64.43 to $83.20. The company also increased business subscribers from 299,000 last year to 528,000 at the end of the last quarter. However, the average revenue generated from the company’s business customers fell from $689.21 to $658.
Despite being a mixed bag, Frontier’s stock fell substantially more during Monday’s after house trading period. At the time of this writing, the stock saw a volume of 738,620 and a low of $4.80. The stock currently sits at $4.89. In other news, Frontier Communications declared a quarterly dividend of $0.105, which was right on the mark with previous dividends. The dividend will be made payable on September the 30th to shareholders on record as of September the 15th.