logo
  Join        Login             Stock Quote

Windstream (WIN) 3Q Earnings Drop 31 Pct, Misses Estimates

 November 08, 2012 09:53 AM
 


(By Balaseshan) Windstream Corp. (NASDAQ: WIN) fell more than 9% in early trade after the provider of advanced communications services reported a 31% drop in quarterly earnings due to higher costs and expenses, missing market expectations.

Earnings were $53.7 million or $0.09 per share for the third quarter, down from $78.1 million or $0.15 per share last year. Excluding items, adjusted earnings per share would have been 12 cents for the third quarter.

Revenue jumped 52% to $1.55 billion, while on a pro forma basis total revenue declined 0.8% 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 third quarter.

[Related -Pitney Bowes (PBI): Is That High-Yield Stock Really A 'Dividend Trap'?]

On a pro forma basis, business service revenues rose 3% to $906 million, while consumer broadband service revenues increased 4% to $115 million. Overall consumer service revenues decreased 3% to $335 million.

Business and consumer broadband revenues represented about 69% of Windstream's total revenues and sales in the quarter and collectively rose 2.7% year-over-year.

Wholesale revenues were $220 million, a decline of 10% from the same period a year ago on a pro forma basis and in line with expectations.

Windstream completed a restructuring of its management organization in the third quarter, simplifying its operating model to better serve customers. The reorganization will result in annualized savings of about $40 million.

[Related -Dividend Roundup: AAN, CSL, DNB, GEO, RELV, THI, WIN]

Additionally, the company has achieved a run rate of $60 million in operating synergies through the third quarter and is on track to achieve $100 million in total by the end of 2014 related to the acquisition of PAETEC.

WIN is trading down 9.34% at $8.54 on Thursday. The stock has been trading between $9.00 and $12.55 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.