There's never a dull moment for the regional telcos.

Frontier Communications and Windstream posted quarterly results this week, and the reports weren't perfect. Both companies that cater to underserved markets in delivering landlines, Internet access, and other telecommunications services fell short of Wall Street's profit targets. However, instead of slashing their generous payouts -- the way a third rival did a week earlier -- both companies stuck to their current quarterly dividend rates.

Investors shouldn't be chasing yields alone. There's often a reason a company is sporting such a hefty payout rate. However, the coast appears to be clear here until we do this all again in three months.


Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Tesla Motors stumbled after the electric-car darling posted a wider-than-expected quarterly deficit. I guess the stock also failed to juice up enough between recharging stations.
  • Exelixis also posted a larger loss than analysts were expecting. Biotechs will do that, but Exelixis was coming off of back-to-back quarters of landing ahead of Wall Street's profit targets.
  • Let's end this on a positive note. IMAX posted better-than-expected results. The company behind bigger-than-life theatrical experiences posted an adjusted profit of $0.23 a share, blowing through the $0.16 analysts were modeling. The multiplex may not be hopping these days, but patrons are certainly showing up for super-sized IMAX screenings. That's the right way to fade to black.

Now let's take a look at the year that lies ahead
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

The article A Fool Looks Back originally appeared on Fool.com.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Exelixis, IMAX, and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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