Windstream Holdings, Inc. Crushed Q4 Earnings Targets

Image source: Windstream.

Windstream Holdings (NASDAQ: WIN  ) this morning reported fourth-quarter results in three parts: a press release, a two-page slide deck, and financial data in a third document.

The provider of chiefly business-class networking services reported a 3% year-over-year revenue decline to $1.5 billion, netting GAAP earnings of $0.20 per share. These results did not disappoint; Wall Street analysts expected earnings around $0.10 per share on $1.5 billion in revenue.

Thirty percent of Windstream's voice service accounts signed off in 2013. The company is making up for these expected losses by stepping up sales of broadband lines and proprietary business services, like cloud hosting and data center co-location.

As the consumer-level voice business continues to shrink, Windstream is shifting its customer mix ever more into the enterprise segment. Business services now account for 74% of the company's total sales, up from 73% a year ago.

"We are executing a growth-oriented strategy while also managing our legacy business for profitability," said Windstream CEO Jeff Gardner. He aims to balance growth investments with debt reduction and solid dividends.

Windstream's current 12.7% dividend yield is supported by cash flows. Sixty-seven percent of Windstream's free cash flows were funneled into dividend checks in the fourth quarter, and Gardner expects to keep this ratio between 68% and 78% in fiscal year 2014.


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  • Report this Comment On February 27, 2014, at 2:54 PM, CaribouPaku wrote:

    Where is the information on the Crushed Q4 Earning targets? I expected more from such a dynamic Headline. The stock seems to be sinking today, any comments on that and as to why it isn't moving forward on such crushing news?

  • Report this Comment On February 27, 2014, at 8:41 PM, OutsourcedOldMan wrote:

    Well I wonder is anyone going to mention the job losses ? And the continued outsourcing of jobs overseas ? Taking money from the tax payer in stimulus money...and then firing tax payers and sending their jobs overseas...and so pious when they post how much they are spending in severance money., that is a one time expense, for those of us who lost our jobs it is not a one time thing, it goes on and on trying to find work, worried about loss of health care, anxiety in a job market that is not the best, especially for those of us who were older , nothing like walking out of a company at the end, after decades of service, some with many decades and management seems to have found somewhere they had to be, not a good bye or even a thank you, I am sure the far more educated and highly paid management will come up with some reason for all this, responsibility to the share holders, etc etc... interesting how in Georgia , Windstream has been slapped with a $600,000 fine , if you think those of us who set up that broadband said to ourselves there is no way we can deliver what they are selling, ever hear about new wine in old wine skins ? What happens ? It bursts . . .mmm of like trying to push super fast speeds over old copper wires and ancient (by today standards) facilities...but what do we know..we just worked there Mr. G and his crew from his hood had it all done. Well these are the ramblings of a fastly approaching 60 year travel on this planet who was taught to work hard, be loyal and give your best, my Father just never told me that who you worked for did not have to reciprocate .

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Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

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9/1/2015 12:12 PM
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Windstream Corp CAPS Rating: ***