Windstream Holdings, Inc.
) is slated to report its fourth-quarter 2013 results before the
opening bell on Feb 27, 2014.
In the last quarter, the company delivered a 11.11% negative
earnings surprise. Let's see how things are shaping up for this
Factors to Influence This Quarter
Wireless competition has resulted in a reduction in the
company's access lines, and brought about pricing pressure in the
industry. As wireless carriers continue to expand and improve
their network coverage while lowering their prices, some
customers have chosen to switch to wireless service from
traditional wireline phone service. This trend is expected to
continue, thereby negatively affecting the number of served
access lines of Windstream.
However, we appreciate Windstream's focus on expanding its
service offerings to businesses with VoIP services, data bundles,
cloud and managed services; data center co-location; fiber
transport as well as increasing distribution channels. The
company has also announced its plan to expand its Carrier
Switched Ethernet services across the U.S.
Our proven model does not conclusively show that Windstream is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below. The Sell-rated
stocks (#4 and 5) should never be considered going into an
Zero Zacks ESP:
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at $0.09. Hence, the ESP is 0.00%.
Zacks Rank #3 (Hold)
: Windstream's Zacks Rank #3 decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter.
Akamai Technologies, Inc.
) with earnings ESP of +2.27% and Zacks Rank #1 (Strong Buy).
) with earnings ESP of +6.41% and Zacks Rank #3.
) with earnings ESP of +1.72% and Zacks Rank #3.
AKAMAI TECH (AKAM): Free Stock Analysis
CA INC (CA): Free Stock Analysis Report
EQUINIX INC (EQIX): Free Stock Analysis
WINDSTREAM HLDG (WIN): Free Stock Analysis
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