Windstream Earnings: Revenue Surges Higher, Falls Short of Estimates

S&P 500 (NYSE:SPY) component Windstream Corporation (NASDAQ:WIN) reported higher profit for the first quarter as revenue showed growth. 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.

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Windstream Earnings Cheat Sheet for the First Quarter

Results: Net income for Windstream Corporation rose to $64.6 million (11 cents per share) vs. $29.4 million (6 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 51% to $1.55 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Windstream Corporation fell short of the mean analyst estimate of 17 cents per share. Analysts were expecting revenue of $1.56 billion.

Quoting Management: “Our business and consumer channels delivered a strong performance during the first quarter,” said Jeff Gardner, president and CEO of Windstream. “The business channel has gained significant traction with the acquisition of PAETEC, and our combined team is having tremendous success driving new sales opportunities. Our consumer business also had a very solid quarter driven by growth in broadband service revenues and continued success with our bundling strategy.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 23.2% to $1.21 billion in the fourth quarter of the last fiscal year. The figure rose 6% in the third quarter of the last fiscal year from the year earlier and climbed 12.3% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by one cent in the fourth quarter of the last fiscal year and by one cent in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 21 cents a share to 18 cents over the last ninety days. For the fiscal year, the average estimate has moved down from 82 cents a share to 58 cents over the last ninety days.

Competitors to Watch: Consolidated Communications Hldgs. Inc, PAETEC Holding Corp., Xfone, Inc., Frontier Communications Corp, Verizon Communications Inc., Cincinnati Bell Inc., 8×8, Inc., CenturyLink, Inc., AT&T Inc., and XO Holdings Inc.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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