FYBR - Frontier Communications -7% on results though analysts see strong financials

Frontier Communications ( NASDAQ: FYBR ) fell 7.4% Friday and slipped to the $25-per-share mark for the first time since December after posting fourth-quarter earnings

The stock is on pace for its worst one-day decline since Nov. 3, then also down 7.4% in reaction to its third-quarter earnings .

The new report was positive, beating on top and bottom lines, though it also included a 2023 outlook that seemed conservative vs. Street estimates when it comes to fiber buildout plans.

Revenue fell not as badly as expected (just 6.5% to $1.44B), and the company built out fiber to a record 381,000 locations.

For 2023, though, the company guided to new fiber locations of 1.3M, along with adjusted EBITDA of $2.11B-$2.16B.

After a strong 1.2M fiber locations added last year, guidance for 1.3M is "below forecasts as to avoid putting undue pressure on its business," MoffettNathanson noted in reaction. The firm was positive on Frontier's financials overall.

So was Citi, saying the company is executing on its strategy to grow fiber revenue while improving EBITDA ahead of some operating leverage ahead.

New Street Research also noted that guidance for 1.3M fiber locations was "lower than we expected," but added the results and outlook were otherwise strong.

For more, dig into the company's earnings call presentation and Seeking Alpha's transcript of the Q4 earnings call .

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