Frontier Communications (FTR) tumbled to the bottom of the S&P 500 today thanks to financial results so bad they called into question the viability telecom company’s dividend.
Frontier Communications was cold as ice today Getty Images
Shares of Frontier Communications plunged 14% to $3.39 today, while the S&P 500 fell 0.7% to 2,097.94.
Hilliard Lyons analyst David Burks contends that “persistent revenue headwinds result in another disappointing quarter”–and put the dividend at risk. He explains why:
Frontier reported third quarter revenue of $2.52 billion, which was below expectations. In addition, revenues declined by $84 million, or 3.2%, sequentially from this years second quarter. While the companys legacy business produced solid results, its recently acquired wireline assets in California, Texas and Florida struggled. Both the voice and video categories experienced meaningful declines as its customer base shrank. Management acknowledged its disappointment with the results and plans to address the situation with several new initiatives. However, revenue declines for Frontier have been a persistent problem for years. On a more positive note, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $1 billion and was just slightly below expectations
investment shares: Towerstream Corporation(TWER)
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Towerstream Corporation (NASDAQ: TWER) shares were also up, gaining 9 percent to $3.49. Towerstream is scheduled to report Q2 financial results on August 9, 2016.
investment shares: SL Green Realty Corporation(SLG)
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“Manhattan on Sale? That’s the Case With Two Cheap REITS” by Andrew Bary discusses whether Manhattan-focused real estate investment trusts Vornado Realty Trust (NYSE: VNO) and SL Green Realty Corp (NYSE: SLG) could rally as the New York market firms. Both trade at a discount to the value of private-market property deals, says the article.
investment shares: Capricor Therapeutics, Inc.(CAPR)
- [By Lisa Levin] Gainers
Marathon Patent Group Inc (NASDAQ: MARA) shares surged 30.2 percent to $5.01 after dropping 40.86 percent on Tuesday. Marathon Patent Group filed for sale of 1.85 million shares of common stock by selling stockholders.
Capricor Therapeutics Inc (NASDAQ: CAPR) shares jumped 17.2 percent to $2.25 after the company reported the FDA clearance of Investigational New Drug application for CAP-1002.
Rite Aid Corporation (NYSE: RAD) gained 13.2 percent to $2.15 following 16.5 percent rally on Tuesday.
Photronics, Inc. (NASDAQ: PLAB) shares climbed 11.8 percent to $10.45 after the company reported stronger-than-expected earnings for its fourth quarter.
China Distance Education Hldgs Ltd (ADR) (NYSE: DL) shares surged 11.3 percent to $8.67. China Distance Education reported Q4 profit of $5.9 million on revenue of $41.7 million.
Cytokinetics, Inc. (NASDAQ: CYTK) shares gained 11 percent to $8.05 after falling 7.05 percent on Tuesday.
Ooma Inc (NYSE: OOMA) shares surged 8.5 percent to $10.85 as the company posted strong Q3 results.
Nuance Communications Inc. (NASDAQ: NUAN) climbed 8 percent to $17.12 after the company reported stronger-than-expected results for its fourth quarter on Tuesday.
American Superconductor Corporation (NASDAQ: AMSC) surged 7.8 percent to $3.59 after the company reported $8 million in D-VAR system orders.
Thermon Group Holdings Inc (NYSE: THR) rose 6.3 percent to $24.17. William Blair upgraded Thermon Group from Market Perform to Outperform.
Domino's Pizza, Inc. (NYSE: DPZ) surged 6.1 percent to $182.88. Nomura upgraded Domino's from Neutral to Buy.
Xencor Inc (NASDAQ: XNCR) rose 5.9 percent to $21.17. Cantor Fitzgerald initiated coverage on Xencor with an Overweight rating.
Idera Pharmaceuticals Inc (NASDAQ: IDRA) gained 5.1 percent to $2.28 after the company disclosed that it has been granted FDA Fast Track designation for IMO-2125.
Regal Entertainment Group (NYSE: RGC) gained 5.1 percent to
investment shares: (LVMUY)
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(Incidentally, the operating structure and history of growth through smart acquisitions and management is a reminiscent story behind the rise of Bernard Arnault and The Arnault Family Group, which is the majority controlling shareholder in LVMH Mo毛t Hennessy Louis Vuitton S.E. (OTCPK:LVMUY) and Christian Dior SE in the ultra-luxury goods industry.)
investment shares: Cott Corporation(COT)
- [By Dan Moskowitz]
Cott (NYSE: COT ) produces and sells over 200 different types of beverages in over 50 countries, and it implements a highly effective strategy. Cott is what is known as a Fast Follower, which makes it unique to other beverage companies.
investment shares: MGT Capital Investments Inc(MGT)
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MGT Capital Investments Inc. (NYSE: MGT) was down, falling around 24 percent to $2.47 as the company reported that it has received a subpoena from the Securities and Exchange Commission. MGT Capital said there is no indication that ‘the company is or will be the subject of any enforcement proceedings.’
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MGT Capital Investments Inc. (NYSE: MGT) shares shot up 73 percent to $2.98 after John McAfee proposed to become Executive Chairman and CEO.
Shares of Anacor Pharmaceuticals Inc (NASDAQ: ANAC) got a boost, shooting up 55 percent to $99.49 after the company agreed to be acquired by Pfizer Inc. (NYSE: PFE) for $99.25 per share.