Windstream Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Windstream (NASDAQ:WIN) will unveil its latest earnings on Thursday, November 8, 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 13 cents per share, a decline of 31.6% 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. It also has not changed during the last month. Analysts are projecting profit to rise by 34.6% versus last year to 51 cents.

Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting net income of 12 cents per share in the second quarter to fall in line with expectations, the company beat estimates by 3 cents in the first quarter.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 51% in revenue from the year-earlier quarter to $1.54 billion.

A Look Back: In the second quarter, profit fell 41.8% to $54.2 million (9 cents a share) from $93.2 million (18 cents a share) the year earlier, meeting analyst expectations. Revenue rose 49.2% to $1.54 billion from $1.03 billion.

Stock Price Performance: Between September 7, 2012 and November 2, 2012, the stock price had fallen 68 cents (-6.7%), from $10.21 to $9.53. 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 6.3% (+73 cents) over that span. It saw one of its worst periods between October 17, 2012 and October 25, 2012 when shares fell for seven straight days, dropping 5.3% (-54 cents) over that span.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 23.2% in the fourth quarter of the last fiscal year and 51% in the first quarter before climbing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 14 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.85 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.88 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 1.8% to $1.11 billion while liabilities rose by 1.7% to $1.3 billion.

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

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