Windstream Earnings: Profit Dips, Investors Cash Shares

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In spite of rising revenues, S&P 500 (NYSE:SPY) component Windstream Corporation’s (NASDAQ:WIN) profit declined in the third 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 Corporation Earnings Cheat Sheet

Results: Net income for Windstream Corporation fell to $53.7 million (9 cents per share) vs. $78.1 million (15 cents per share) a year earlier. This is a decline of 31.2% from the year-earlier quarter.

Revenue: Rose 51.7% to $1.55 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Windstream Corporation reported adjusted net income of 12 cents per share. By that measure, the company fell short of mean estimate of 13 cents per share. Analysts were expecting revenue of $1.56 billion.

Quoting Management: “Our business continues to perform well, and I am confident in our ability to deliver strong free cash flow long-term to support our dividend,” said Jeff Gardner, president and CEO of Windstream. “The dividend is a key component of our investment thesis, and we believe it is the best way to provide returns to our shareholders.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 49.2% to $1.54 billion in the second quarter. The figure rose 51% in the first quarter from the year earlier and climbed 23.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 12 cents.

Looking Forward: Expectations for the fourth quarter have not changed from 14 cents. For the fiscal year, the average estimate has moved down from 52 cents a share to 51 cents over the last ninety days.

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

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