Windstream Corp Earnings: Reversing to a Loss Following Two Consecutive Quarters of Profit

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S&P 500 (NYSE:SPY) component Windstream Corporation (NASDAQ:WIN) reported its results for the fourth quarter. 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.

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Windstream Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $31.9 million (6 cents per diluted share) in the quarter. Windstream Corporation had a net income of $56.5 million or 10 cents per share in the year-earlier quarter.

Revenue: Rose 23.3% to $1.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Windstream Corporation reported adjusted net income of 19 cents per share. By that measure, the company fell short of mean estimate of 20 cents per share. It beat the average revenue estimate of $1.1 billion.

Quoting Management: “2011 was an incredibly successful year for Windstream,” said Jeff Gardner, president and chief executive officer. “As a result of solid execution in our legacy business, coupled with our targeted acquisition approach, we significantly improved the financial trajectory of our company and reached a significant milestone of growing pro forma revenue and Adjusted OIBDA during the fourth quarter on a year-over-year basis, giving us great momentum heading into 2012.” Windstream acquired PAETEC, a leading national business services provider, in the fourth quarter of 2011. The transaction added more than 36,000 miles of fiber to Windstream’s network and seven data centers, significantly enhancing the company’s ability to serve business customers.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 6% to $1.02 billion in the third quarter. The figure rose 12.3% in the second quarter from the year earlier and climbed 20.7% in the first quarter from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by one cent with net income of 19 cents versus a mean estimate of net income of 20 cents per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for first quarter of the next fiscal year is 21 cents per share, an increase from 20 cents sixty days ago. For the fiscal year, the average estimate has moved down from 76 cents a share to 75 cents over the last ninety days.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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