Windstream First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Windstream Corp (NASDAQ:WIN) will unveil its latest earnings on Thursday, May 10, 2012. 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 17 cents per share, a decline of 5.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 20 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 17 cents during the last month. Analysts are projecting profit to rise by 25.6% compared to last year’s 58 cents.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the fourth quarter of the last fiscal year, it missed the mark by one cent as a result of reporting profit of 19 cents against an estimate of net income of 20 cents per share. In the third quarter of the last fiscal year, the company fell short of forecasts by one cent.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 52.9% in revenue from the year-earlier quarter to $1.56 billion.

Analyst Ratings: Analysts seem relatively indifferent about Windstream with 11 of 15 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $15.9 million (4 cents a share) from a profit of $72.4 million (15 cents) a year earlier, missing analyst expectations. Revenue rose 23.2% to $1.21 billion from $981 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 20.7% in the first quarter of the last fiscal year, 12.3% in the second quarter of the last fiscal year and 6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 8, 2012 and May 4, 2012, the stock price fell 81 cents (-6.7%), from $12.14 to $11.33. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight straight days, dropping 5.2% (-64 cents) over that span. The stock price saw one of its best stretches over the last year between January 9, 2012 and January 18, 2012, when shares rose for seven straight days, increasing 6.2% (+71 cents) over that span.

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

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