Windstream Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Windstream Corp (NASDAQ:WIN) will unveil its latest earnings on Friday, November 4, 2011. Windstream 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 net income of 20 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 19 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 20 cents during the last month. For the year, analysts are projecting profit of 78 cents per share, a rise of 1.3% from last year.

Past Earnings Performance: Last quarter, the company showed net income of 19 cents per share in the second quarter to fall in line with expectations, the company beat estimates by one cent in the first quarter. This comes after the company failed to meet analysts’ expectations in the previous two.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 6.6% in revenue from the year-earlier quarter to $1.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about Windstream with eight of 14 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 18% to $93.2 million (18 cents a share) from $79 million (17 cents a share) the year earlier, meeting analyst expectations. Revenue rose 12.3% to $1.03 billion from $917.3 million.

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 23.6%, 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 increase in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit decreases. The figure dropped 68.3% in the first quarter and 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), Sprint (NYSE:S), Cincinnati Bell Inc. (NYSE:CBB), 8×8, Inc. (NASDAQ:EGHT), CenturyLink, Inc. (NYSE:CTL), AT&T Inc. (NYSE:T).

Stock Price Performance: During October 3, 2011 to October 31, 2011, the stock price had risen 86 cents (7.6%) from $11.31 to $12.17. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 5.1% (-66 cents) over that span. 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% (+41 cents) over that span. Shares are down 97 cents (-7.4%) year to date.

(Source: Xignite Financials)

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