The 10-second takeaway
For the quarter ended June 30 (Q2), Windstream met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Windstream recorded revenue of $1.54 billion. The 12 analysts polled by S&P Capital IQ expected revenue of $1.54 billion on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.12. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS of $0.09 for Q2 were 50% lower than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.8%, 740 basis points worse than the prior-year quarter. Operating margin was 17.5%, 1,140 basis points worse than the prior-year quarter. Net margin was 3.5%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $6.19 billion. The average EPS estimate is $0.53.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Windstream is outperform, with an average price target of $11.52.
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