Windstream Meets on the Top Line, Misses Where it Counts

Windstream (NAS: WIN) reported earnings on Nov. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Windstream met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.


Margins shrank across the board.

Revenue details
Windstream recorded revenue of $1.55 billion. The 11 analysts polled by S&P Capital IQ foresaw a top line of $1.54 billion on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $1.02 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.09 for Q3 were 36% lower than the prior-year quarter's $0.14 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.1%, 810 basis points worse than the prior-year quarter. Operating margin was 17.6%, 1,040 basis points worse than the prior-year quarter. Net margin was 3.5%, 350 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $6.17 billion. The average EPS estimate is $0.52.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Windstream is outperform, with an average price target of $10.98.

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The article Windstream Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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roddwilkerson@gmail.com

I have been a Win shareholder for many years and it has been my most consistant investment.

November 09 2012 at 4:27 PM Report abuse rate up rate down Reply