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Frontier to be blue in 2Q
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June 28, 1999: 8:21 p.m. ET
Price fall and customer loss hurt earnings as company mulls Qwest bid
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NEW YORK (CNNfn) - Telecommunications company Frontier Corp., hit by falling prices and a customer loss, warned Monday that second-quarter and year-end revenue and earnings will fall short of Wall Street's expectations.
Separately, the Rochester, N.Y.-based company said its board of directors is continuing to evaluate the revised proposal from long distance carrier Qwest Communications (QWST) to acquire Frontier. Qwest is also making a bid for US West (USW).
Frontier said second-quarter results will be in the area of 20 cents to 22 cents per share, falling short of First Call Corp.'s earnings estimate of 28 cents per share.
The company said pricing erosion in the switched long-distance business hurt Frontier's minute volume and profitability in this area. Frontier also said the loss of a wholesale customer in the United Kingdom due to "credit issues" will pull down earnings.
Together, Frontier said, these items will add up to an anticipated 20 cent per share decline in earnings expectations for the year. First Call had projected earnings of $1.19 per share for the year.
Frontier (FRO) said the earnings warning will not affect its acquisition by Global Crossing (GBLX).
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