Freenet (OTCMKTS:FRTAF) Posts Quarterly Earnings Results

Key Points

• EPS miss but revenue beat: Freenet reported Q results with EPS of $0.65, missing the $0.74 estimate by $0.09, while revenue of $712.21M comfortably topped estimates of $611.50M.
• Analyst sentiment has turned cautious: UBS and DZ Bank downgraded the stock and MarketBeat shows an average rating of "Reduce" (1 Buy, 3 Hold, 2 Sell).
• Stock and financial metrics: Shares were flat at $32.04, valuing Freenet at $3.81B with a P/E of 16.69 and a 52-week range of $30.78–$35.41; liquidity ratios are relatively tight (current 0.68, quick 0.64).

Freenet (OTCMKTS:FRTAF - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.65 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.74 by ($0.09), Zacks reports. The firm had revenue of $712.21 million during the quarter, compared to analyst estimates of $611.50 million.

Freenet Price Performance

FRTAF remained flat at $32.04 during trading on Friday. The stock's fifty day simple moving average is $34.46 and its 200-day simple moving average is $33.29. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.68 and a quick ratio of 0.64. Freenet has a 52 week low of $30.78 and a 52 week high of $35.41. The firm has a market capitalization of $3.81 billion, a price-to-earnings ratio of 16.69 and a beta of -0.11.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FRTAF. UBS Group downgraded Freenet from a "buy" rating to a "sell" rating in a report on Wednesday, February 18th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Freenet in a report on Wednesday, January 21st. Finally, DZ Bank cut shares of Freenet from a "strong-buy" rating to a "hold" rating in a research report on Friday, March 13th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce".

About Freenet

Freenet AG is a Germany-based telecommunications and digital services provider offering a broad portfolio of consumer and business solutions. The company specializes in distributing mobile communications services, including contract and prepaid offerings from major network operators, as well as providing broadband internet access, cable and IPTV television, and related hardware such as routers and set-top boxes. Through its digital lifestyle segment, Freenet AG also delivers value-added services and digital content, ranging from music and video streaming to online gaming and e-books.

In its mobile communications division, Freenet AG acts as a sales and service partner for leading German network operators, managing customer acquisition, billing, and technical support.

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