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Windstream (WIN) Reports Narrower-than-Expected Q1 Loss

Windstream Holdings Inc.WIN reported mixed financial results for the first quarter of 2016. The company incurred a narrower-than-expected loss in the quarter, while revenues lagged the Zacks Consensus Estimate.

On a GAAP basis, net loss was $231.9 million or a loss of $2.52 per share, compared with net income of $5.3 million or 5 cents in the year-ago quarter. On an adjusted basis, the company reported loss per share of 23 cents, considerably narrower than the Zacks Consensus Estimate of a loss of 54 cents.

Pro forma revenues dipped 3% year over year to $1,373.4 million in the first quarter, marginally below the Zacks Consensus Estimate of $1,378.8 million. Total Service revenues also declined 3% to $1,340.6 million, while Product revenues recorded 11% year-over-year growth to $32.4 million.

The company also completed a $75 million share repurchase program in the first quarter.

Liquidity & Cash Flow

In the first quarter of 2016, Windstream generated $127.2 million of cash from operations, compared with $243.8 million in the prior-year quarter. Free cash flow was $17.6 million on a year-to-date basis.

Windstream exited the quarter with $74.6 million of cash and cash equivalents, compared with $31.3 million at the end of Dec 31, 2015. Long-term debt at the end of the first quarter totaled $5,433.1 million, compared with $5,164.6 million at 2015 end.

Subscriber Statistics

In the reported quarter, Windstream lost 4% of its high-speed Internet customers and 8% of its digital television subscribers. At the end of the quarter, the company had 1,430,700 Household customers.

Outlook

For 2016, the company expects total service revenues in the range of $5275-$5425 million. It projects capital expenditure in the band of $800-$850 million. Meanwhile, adjusted OIBDAR is anticipated to be around $1.90-$1.95 million.

Zacks Rank & Other Stocks to Consider

Windstream currently sports a Zacks Rank #1 (Strong Buy). A few other favorably placed stocks in the same space include AT&T Inc. T , CenturyLink, Inc. CTL and Sprint Corp. S . All these stocks carry a Zacks Rank #3 (Hold).

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AT&T INC (T): Free Stock Analysis Report

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WINDSTREAM HLDG (WIN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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