Windstream Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Windstream Corp (NASDAQ:WIN) will unveil its latest earnings on Friday, August 5, 2011. Windstream Corporation is a customer-focused broadband and telecommunications company that provides phone, Internet, complex data, and voice and transport services. It reaches customers in 29 states and offers its services primarily in rural areas in the United States.

Windstream Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 19 cents per share, a decline of 5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of 76 cents per share, a decline of 1.3% from last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting profit of 18 cents per share against an estimate of net income of 19 cents per share. The quarter before that, it missed expectations by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $1.02 billion in revenue this quarter, a rise of 6.3% from the year ago quarter. Analysts are forecasting total revenue of $4.09 billion for the year, a rise of 4.1% from last year’s revenue of $3.93 billion.

Analyst Ratings: Analysts seem relatively indifferent about Windstream with 11 of 16 analysts surveyed maintaining a hold rating.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 26%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 31.5% from the year earlier quarter.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 68.3% from the year earlier quarter, while the figure dropped 4.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Consolidated Communications Hldgs. Inc (NASDAQ:CNSL), PAETEC Holding Corp. (NASDAQ:PAET), Xfone, Inc. (AMEX:XFN), Frontier Communications Corp (NYSE:FTR), Verizon Communications Inc. (NYSE:VZ), Cincinnati Bell Inc. (NYSE:CBB), 8×8, Inc. (NASDAQ:EGHT), CenturyLink, Inc. (NYSE:CTL), AT&T Inc. (NYSE:T), and XO Holdings Inc. (XOHO).

Stock Price Performance: During July 1, 2011 to August 1, 2011, the stock price had dropped 97 cents (-7.4%) from $13.12 to $12.15. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 5, 2011 when shares rose for seven-straight days, rising 3.3% (+42 cents) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 5.2% (-68 cents) over that span. Shares are down $1.26 (-9.4%) year to date.

(Source: Xignite Financials)

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