NEW YORK (AP) — Shares of phone company Frontier Inc. climbed Wednesday after it reported second-quarter results that beat Wall Street's expectations.
THE SPARK: Late Tuesday, the Stamford, Conn., company posted net income for the second quarter of $18 million, or 2 cents per share. That was down from $32 million, or 3 cents per share, a year earlier.
Excluding items, earnings were 8 cents per share. Analysts polled by FactSet were expecting earnings of 5 cents per share.
Revenue was $1.26 billion, down 4.8 percent from a year ago. That was the slowest revenue decline since Frontier took over millions of phone lines from Verizon Communications Inc. two years ago.
Like all phone companies, Frontier is losing lines as households opt for phone service from cable companies or chose to rely solely on their cellphones.
THE ANALYSIS: Stifel Nicolaus analyst Christopher King pointed to the better-than-expected results and Frontier's dividend yield, which is at 9.3 percent after Wednesday's rally.
"We believe Frontier remains one of the more attractive names in our coverage universe," King said.
SHARE ACTION: Frontier shares rose 46 cents, or 12 percent, to $4.38 in late trading. It was the highest level for the stock since March.