Frontier Communications Stock Slides After Company Reveals Cyberattack: The Details

Author: Adam Eckert | April 18, 2024 05:09pm

Frontier Communications Parent Inc (NASDAQ:FYBR) shares are experiencing weakness in Thursday’s after-hours session after the company disclosed an operational disruption due to a cyberattack.

What Happened: In a regulatory filing released after the bell on Thursday, Frontier said it detected a third party had gained unauthorized access to portions of its information technology business on April 14.

After detecting the unauthorized access, the company initiated its cyber incident response protocols, including shutting down certain systems, which resulted in “an operational disruption that could be considered material.”

“As of the date of this filing, the Company believes it has contained the incident and has restored its core information technology environment and is in the process of restoring normal business operations,” the company said in the filing.

Based on internal investigations, Frontier believes the culprit was likely a cybercrime group. The company noted that the attackers gained access to personally identifiable information.

Frontier has notified law enforcement, but it doesn’t believe the incident is “reasonably likely to materially impact” the company’s financial results or operations. The investigation is currently ongoing.

Frontier is due to report first-quarter financial results before the market opens on May 3. The company is expected to report a loss of 7 cents per share on revenue of $1.436 billion, according to analyst estimates from Benzinga Pro.

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FYBR Price Action: Frontier shares were down 3.59% after hours at $21.76 at the time of publication Thursday, according to Benzinga Pro.

Photo: 3844328 from Pixabay.

Posted In: FYBR