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What's in Store for Windstream (WIN) this Earnings Season?
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Leading local exchange carrier in the U.S., Windstream Holdings Inc. , is slated to report fourth-quarter 2016 financial numbers before the opening bell on Mar 1.
Over the past three months, shares of Windstream lost 4.09% compared with the Zacks-categorized Wireless National industry’s gain of 4.56%.
Last quarter, the company posted a negative earnings surprise of 32.61%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 112.78%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
We appreciate Windstream’s continuous efforts to reward its stockholders with a quarterly dividend of 15 cents per share on the company's common stock. This dividend will be paid on or about Apr 17, 2017, to Windstream stockholders of record as of Mar 31, 2017.
We appreciate Windstream’s focus on improving sales, cutting cost and planning pricing initiatives, which are expected to rake in profits and check churn. Windstream’s cloud-to-cloud disaster recovery management solutions replicate mission-critical virtual servers and data. Launch of Kinetic TV services in 13 North Carolina communities was aimed at boosting broadband revenues and customer ARPU (average revenue per user). The company is striving to reverse the broadband subscriber decline trend experienced in the last reported quarter.
Also, expansion of its metro fiber network business in the Atlanta, Minneapolis, Philadelphia, St. Louis, Cleveland, Dallas and Chicago areas bode well. Meanwhile, the achievement of all state and federal regulatory approvals required for the acquisition of EarthLink Holdings Corp. is a major breakthrough.
On the flip side, Windstream has been losing access lines due to pricing pressure and fierce competition. The company is also under pressure with losses in the wholesale business. The implementation of stringent regulatory measures by the FCC compels companies like Windstream to cut rates for customers.
Further, continuous investments in technology and network upgrades may dent the company’s earnings. Outdated network equipment was the main reason for the service discontinuation of the DSL (digital subscriber line) service in CLEC (competitive local exchange carrier) territories across 25 states.
Windstream’s last reported highly leveraged balance sheet is another major concern.
Earnings Whispers
Our proven model does not conclusively show that Windstreamis likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Windstream has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 47 cents. You can uncover the best stocks to buy or sell before they’re reported with the Earnings ESP Filter.
Zacks Rank: Windstream has a Zacks Rank #2 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile,we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies in the Zacks categorized broader Computer and Technology sector that have the right combination of elements to post an earnings beat this quarter.
Broadcom Limited (AVGO - Free Report) is expected to release first-quarter fiscal 2017 results on Mar 1, 2017. The company has an Earnings ESP of +0.66% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Broadcom’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 6.36%.
Momo Inc. (MOMO - Free Report) is expected to release fourth-quarter 2016 results on Mar 7, 2017. The company has an Earnings ESP of +3.23% and a Zacks Rank #3. The company’s earnings beat the Zacks Consensus Estimate in only one of the previous four quarters.
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What's in Store for Windstream (WIN) this Earnings Season?
Leading local exchange carrier in the U.S., Windstream Holdings Inc. , is slated to report fourth-quarter 2016 financial numbers before the opening bell on Mar 1.
Over the past three months, shares of Windstream lost 4.09% compared with the Zacks-categorized Wireless National industry’s gain of 4.56%.
Last quarter, the company posted a negative earnings surprise of 32.61%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 112.78%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
We appreciate Windstream’s continuous efforts to reward its stockholders with a quarterly dividend of 15 cents per share on the company's common stock. This dividend will be paid on or about Apr 17, 2017, to Windstream stockholders of record as of Mar 31, 2017.
We appreciate Windstream’s focus on improving sales, cutting cost and planning pricing initiatives, which are expected to rake in profits and check churn. Windstream’s cloud-to-cloud disaster recovery management solutions replicate mission-critical virtual servers and data. Launch of Kinetic TV services in 13 North Carolina communities was aimed at boosting broadband revenues and customer ARPU (average revenue per user). The company is striving to reverse the broadband subscriber decline trend experienced in the last reported quarter.
Also, expansion of its metro fiber network business in the Atlanta, Minneapolis, Philadelphia, St. Louis, Cleveland, Dallas and Chicago areas bode well. Meanwhile, the achievement of all state and federal regulatory approvals required for the acquisition of EarthLink Holdings Corp. is a major breakthrough.
On the flip side, Windstream has been losing access lines due to pricing pressure and fierce competition. The company is also under pressure with losses in the wholesale business. The implementation of stringent regulatory measures by the FCC compels companies like Windstream to cut rates for customers.
Further, continuous investments in technology and network upgrades may dent the company’s earnings. Outdated network equipment was the main reason for the service discontinuation of the DSL (digital subscriber line) service in CLEC (competitive local exchange carrier) territories across 25 states.
Windstream’s last reported highly leveraged balance sheet is another major concern.
Earnings Whispers
Our proven model does not conclusively show that Windstreamis likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Windstream has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 47 cents. You can uncover the best stocks to buy or sell before they’re reported with the Earnings ESP Filter.
Zacks Rank: Windstream has a Zacks Rank #2 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile,we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Windstream Holdings, Inc. Price and EPS Surprise
Windstream Holdings, Inc. Price and EPS Surprise | Windstream Holdings, Inc. Quote
Key Picks
Here are some companies in the Zacks categorized broader Computer and Technology sector that have the right combination of elements to post an earnings beat this quarter.
Broadcom Limited (AVGO - Free Report) is expected to release first-quarter fiscal 2017 results on Mar 1, 2017. The company has an Earnings ESP of +0.66% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Broadcom’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 6.36%.
Momo Inc. (MOMO - Free Report) is expected to release fourth-quarter 2016 results on Mar 7, 2017. The company has an Earnings ESP of +3.23% and a Zacks Rank #3. The company’s earnings beat the Zacks Consensus Estimate in only one of the previous four quarters.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>