The 10-second takeaway
For the quarter ended March 31 (Q1), Windstream missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Gross margins were steady, operating margins shrank, net margins shrank.
Windstream chalked up revenue of $1.50 billion. The 13 analysts polled by S&P Capital IQ expected to see revenue of $1.53 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.10. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. Non-GAAP EPS of $0.10 for Q1 were 23% lower than the prior-year quarter's $0.13 per share. GAAP EPS of $0.09 for Q1 were 18% lower than the prior-year quarter's $0.11 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 54.4%, much about the same as the prior-year quarter. Operating margin was 16.4%, 150 basis points worse than the prior-year quarter. Net margin was 3.5%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $6.11 billion. The average EPS estimate is $0.43.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Windstream is hold, with an average price target of $9.73.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.