Join        Login             Stock Quote

Windstream (WIN) Swings To 4Q Profit, Yet Misses Estimates

 February 19, 2013 07:47 AM

(By Balaseshan) Windstream Corp. (NASDAQ: WIN), a provider of advanced communications services, swung to a quarterly profit due to higher revenue. However, on a pro forma basis, results missed Street's expectations.

Earnings were $10.1 million or $0.02 per share for the fourth quarter, compared to a loss of $34.7 million or $0.07 per share last year. Excluding items, adjusted earnings per share would have been 11 cents for the latest quarter.

Revenue jumped 28% to $1.538 billion, while on a pro forma basis total revenue declined 2% year-over-year.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.13 per share on revenue of $1.55 billion for the fourth 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 $917 million, while consumer broadband service revenues increased 5% to $116 million. Overall consumer service revenues decreased 1.5% to $334 million.

Business and consumer broadband revenues represented about 70% of Windstream's total revenues and sales in the quarter and collectively rose 2% year-over-year.

Wholesale revenues were $169 million, a decline of 17% from the same period a year ago, due to lower intrastate access rates as part of intercarrier compensation reform implemented in July 2012 and lower switched access revenue from declining consumer voice lines.

Windstream expects growth in business revenue and consistent trends in consumer revenue to largely offset declines in wholesale revenue such that total revenue in 2013 is within a range of a 2% decline to a 1% rise as compared to last year.

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

Capital expenditures are expected to decline by more than $200 million in 2013 and be between $800 million and $850 million. Windstream expects adjusted free cash flow to increase between 13% and 25% from 2012, resulting in a dividend payout ratio ranging from 61% to 68%.

WIN closed Friday's regular session down 1.71% at $8.93. The stock has been trading between $7.86 and $12.55 for the past 52 weeks.

iOnTheMarket Premium


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

rss feed

Latest Stories

article imageGenuine Parts Co. (GPC): This Company's Raised Dividends For 59 Years

There are 253 million cars and trucks driving along U.S. roads. And the average age of those automobiles is read on...

article imageMicrosoft Bear Rolls Put Position

Microsoft options (MSFT) traded on above average volume by lunchtime Wednesday as shares fell more than the read on...

article imageAn Unexpected Drop For Jobless Claims

New filings for unemployment declined last week, the Labor Department reports, delivering a bullish read on...

article imageMedia Stock Screams Value In Spite Of Cord-Cutters

"Cord-cutter" has become the new buzzword. From Sony (NYSE: SNE) to Apple (NASDAQ: AAPL), major read on...

Popular Articles

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.