(By Balaseshan) Telephone company Windstream Corp. (NASDAQ:WIN) reported a 44% drop in quarterly earnings due to higher costs and expenses. Revenue came in line with consensus, while earnings missed Street's expectations.
Earnings were $54.2 million or $0.09 per share for the second quarter, down from $96.7 million or $0.19 per share last year. Excluding items, adjusted earnings per share would have been 12 cents for the second quarter.
Revenue jumped 49% to $1.54 billion, while on a pro forma basis total revenue declined 1% year-over-year.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.13 per share on revenue of $1.54 billion for the second quarter.
On a pro forma basis, business service revenues rose 2% to $893 million, while consumer broadband service revenues increased 4% to $114 million. Overall consumer service revenues decreased 3% to $336 million.
Business and consumer broadband revenues represented about 68% of Windstream's total revenues and sales in the quarter and collectively rose 2.5% year-over-year during the quarter.
Wholesale revenues were $214 million, a decline of 12% from the same period a year ago on a pro forma basis and in line with expectations due largely to the decision in the first quarter to suspend and modify certain wholesale products.
On Wednesday, Windstream's board declared regular quarterly dividend of $0.25 per share, payable October 15, to stockholders of record as of September 28.
As a result of continued sales success in business channel, as well as expected cost savings from the PAETEC acquisition and management reorganization, the company expects to see sequential improvement in revenue and adjusted OIBDA for the remainder of the year, particularly in the fourth quarter.
WIN closed Wednesday's regular session down 2.05% at $10.05. The stock has been trading between $9.00 and $13.08 for the past 52 weeks.