Shares of Frontier Communications Corp. were up nearly 12 percent late Wednesday a day after the company beat second-quarter expectations on Wall Street.
The stock rose 47 cents on the Nasdaq to $4.39, though Frontier isn't close to surpassing its 52-week high of $7.62.
The telecommunications company, based in Stamford, Conn., reported revenues and adjusted earnings that exceeded Wall Street's expectations, according to The Wall Street Journal.
Nonetheless, Frontier faces challenges. Revenues declined to $1.258.8 billion from $1.268.1 billion in the first quarter of 2012 and $1.322.3 billion in the year-earlier period.
The company is not immune to the growing number of Americans who have chosen to ax their traditional phone lines in favor of smartphones and other technology. Frontier ended the quarter with 5.07 million access lines, down from 5.49 million in the second quarter of 2011.
Frontier watched its net income attributable to common shareholders shrink to $18 million, or 2 cents per share, from $32.3 million, or 3 cents per share in the same period a year ago. Second-quarter results included a loss on the early extinguishment of debt, integration costs and severance and early retirement expenses.
The company ended the month of June with roughly 2.98 million residential customers and 296,500 business customers.
In July, Frontier announced that it would accept $71.9 million from the Federal Communications Commission in subsidies from the "Connect America Fund" to expand broadband service to another 92,876 homes covering more than half of the 27 states it serves. Frontier on Tuesday noted expanding the reach of its broadband network to another 60,000 homes during the second quarter, and the company said it is focused on increasing its network speeds over the next year and a half.
