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Windstream (WIN) Tops Q1 Earnings Estimate, Revenues Lag - Tale of the Tape

Windstream Holdings Inc. ( WIN ) is a leading rural local exchange carrier in the U.S. The company offers broadband, telephony and digital TV services to consumers primarily in rural areas. Windstream also provides advanced network communications such as cloud computing and managed services to business enterprises.

Recently, Windstream completed the tax-free spin-off of its select telecommunications network assets to become an independent publicly traded real estate investment trust. With the spin-off now in place, the company aims to offer faster broadband speeds and more robust performance to its consumers.

In Apr 2015, the company was awarded a nine-year multimillion-dollar contract by the General Services Administration for green buildings initiative. We believe the contract win will drive the company's top line higher, going ahead. However, threats from a competitive market, soft carrier transport business situation, and a highly leveraged balance sheet may weigh upon the quarter's performance.

Windstream currently carries a Zacks Rank #3 (Hold). The company has generated a massive negative average earnings surprise of 35.77% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Windstream posted a net income in Q1 in contrast to the Zacks Consensus Estimate of a net loss. Our consensus estimate called for loss of 3 cents per share and the company reported earnings per share of 5 cents. Investors should note that these figures take out stock option expenses.

Revenue: Windstream reported total revenue of $1,418.6 million fell below our estimate by around $9.4 million.

Key States to Note: In the reported quarter, Windstream lost 156,000 voice lines but gained 800 high-speed Internet customers. At quarter end, the company had 1.599 million voice lines, 1.1324 million high-speed Internet customers and 0.3788 million digital TV customers.

Check back later for our full write up on this Windstream earnings report later!

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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.