The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Windstream beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Windstream booked revenue of $1.21 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.08 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $979.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.19. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.19 per share on the same basis. GAAP EPS were -$0.06 for Q4 versus $0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.4%, 1,400 basis points worse than the prior-year quarter. Operating margin was 11.3%, 1,880 basis points worse than the prior-year quarter. Net margin was -2.6%, 1,020 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $6.25 billion. The average EPS estimate is $0.89.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Windstream is outperform, with an average price target of $13.40.
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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. 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.