Windstream Holdings Inc.
) reported weak third-quarter 2013 results due to voice and
digital television subscriber loss and reduced intrastate access
rates. These were partially offset by strong data and integrated
Quarterly adjusted earnings per share of 8 cents fell short of
the Zacks Consensus Estimate of 9 cents. Comparing with the
prior-year quarter, earnings remained the same.
Pro forma revenues decreased 2.7% year over year to $1,503.6
million in the third quarter and was below the Zacks Consensus
Estimate of $1,507.0 million. Total Service revenues and Product
sales fell 2.6% and 6.4% year over year, respectively.
Adjusted OIBDA (excluding non-cash pension expense, non-cash
stock-based compensation and restructuring charges) was $574.7
million in the third quarter compared with $592.0 million in the
During the third quarter, total access lines, which include
voice lines, high-speed Internet and digital television
customers, decreased 4.8% year over year to $3.35 million. Voice
lines and digital television customers witnessed a year-over-year
decline of 6.0% and 5.0%, respectively, while high-speed Internet
fell a 3.0%.
Windstream exited the third quarter with cash and cash
equivalents of $73.4 million compared with $132.0 million at the
end of 2012. Long-term debt and capital lease obligations were
$8,760.8 million compared with $8,099.8 million at the end of
For the third quarter, the company generated adjusted free
cash flow of $264.0 million and capital expenditure was $187.4
We believe that a competitive market scenario, continuous
access line loss, regulatory issues and constant upgrades in the
technological scenario will impede the company's growth.
Other telecom companies like
Century Link Inc.
) reported third-quarter results on Nov 5 and Nov 6,
respectively. Frontier and CenturyLink reported in-line earnings
of 6 and 63 cents respectively.
Windstream currently carries a Zacks Rank #4 (Sell). However,
a stock worth considering within the same sector is
), which currently carries a Zacks Rank #2 (Buy).
CENTURYLINK INC (CTL): Free Stock Analysis
FRONTIER COMMUN (FTR): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
WINDSTREAM HLDG (WIN): Free Stock Analysis
To read this article on Zacks.com click here.