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Windstream (WIN) Q2 Loss Narrower Than Estimated, Sales Fall
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Windstream Holdings, Inc. reported lackluster second-quarter 2018 results with lower revenues and wider losses on a year-over-year basis.
Net Loss
For the second quarter, the company incurred a net loss of $93.7 million or a loss of $2.30 per share compared with a net loss of $68.1 million or a loss of $1.83 per share in the year-ago quarter. The bottom line was narrower than the Zacks Consensus Estimate of a loss of $2.74 per share.
Windstream Holdings, Inc. Price, Consensus and EPS Surprise
Quarterly total revenues decreased 3% year over year to $1,444.4 million. The top line, however, surpassed the Zacks Consensus Estimate of $1,440 million. Service revenues decreased 3% to $1,424.6 million. Consolidated margin of 35.1% improved 150 basis points driven by strong expense management initiatives. Product sales were down 24% to $19.8 million.
Other Quarter Details
Total costs and expenses were $1,356.1 million, down 2% year over year. Operating income came in at $88.3 million compared with $102.5 million in the prior-year quarter. Adjusted OIBDAR came in at $507.4 million compared with $500.5 million in the year-ago quarter. Adjusted OIBDA was $343.5 million compared with $337.1 million in the year-ago quarter.
Segmental Performance
Consumer & Small Business: Total revenues were $472.5 million, down 6% year over year. Of the total, Service revenues were $465.9 million and product sales were $6.6 million. Segment income was $273.6 million, down 5% year over year.
Enterprise: Total revenues were $743.1 million, up 1% year over year. Of the total, Service revenues were $730.1 million and product sales were $13 million. Segment income was $161.2 million, up 14%.
Wholesale: Total revenues came in at $182.4 million, down 7% year over year. Segment income was $128.8 million, down 5%.
Consumer CLEC: Revenues totaled $46.4 million compared with $51.7 million in the year-ago quarter. The segment’s income was $26.5 million compared with $26 million in the prior-year quarter.
Cash Flow
In the first six months of 2018, Windstream generated $539.7 million of cash from operations compared with $374.9 million in the prior-year period. Adjusted free cash flow for the first half of the year was $113.6 million.
Liquidity
As of Jun 30, 2018, the company had $45.3 million of cash and cash equivalents with $5,867.9 million of long-term debt.
United States Cellular has a long-term earnings growth expectation of 1%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 303.6%.
AT&T has a long-term earnings growth expectation of 3.4%. It surpassed earnings estimates twice in the trailing four quarters with an average positive surprise of 5.9%.
Aquantia surpassed earnings estimates once in the trailing four quarters with an average positive surprise of 50%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Windstream (WIN) Q2 Loss Narrower Than Estimated, Sales Fall
Windstream Holdings, Inc. reported lackluster second-quarter 2018 results with lower revenues and wider losses on a year-over-year basis.
Net Loss
For the second quarter, the company incurred a net loss of $93.7 million or a loss of $2.30 per share compared with a net loss of $68.1 million or a loss of $1.83 per share in the year-ago quarter. The bottom line was narrower than the Zacks Consensus Estimate of a loss of $2.74 per share.
Windstream Holdings, Inc. Price, Consensus and EPS Surprise
Windstream Holdings, Inc. Price, Consensus and EPS Surprise | Windstream Holdings, Inc. Quote
Revenues
Quarterly total revenues decreased 3% year over year to $1,444.4 million. The top line, however, surpassed the Zacks Consensus Estimate of $1,440 million. Service revenues decreased 3% to $1,424.6 million. Consolidated margin of 35.1% improved 150 basis points driven by strong expense management initiatives. Product sales were down 24% to $19.8 million.
Other Quarter Details
Total costs and expenses were $1,356.1 million, down 2% year over year. Operating income came in at $88.3 million compared with $102.5 million in the prior-year quarter. Adjusted OIBDAR came in at $507.4 million compared with $500.5 million in the year-ago quarter. Adjusted OIBDA was $343.5 million compared with $337.1 million in the year-ago quarter.
Segmental Performance
Consumer & Small Business: Total revenues were $472.5 million, down 6% year over year. Of the total, Service revenues were $465.9 million and product sales were $6.6 million. Segment income was $273.6 million, down 5% year over year.
Enterprise: Total revenues were $743.1 million, up 1% year over year. Of the total, Service revenues were $730.1 million and product sales were $13 million. Segment income was $161.2 million, up 14%.
Wholesale: Total revenues came in at $182.4 million, down 7% year over year. Segment income was $128.8 million, down 5%.
Consumer CLEC: Revenues totaled $46.4 million compared with $51.7 million in the year-ago quarter. The segment’s income was $26.5 million compared with $26 million in the prior-year quarter.
Cash Flow
In the first six months of 2018, Windstream generated $539.7 million of cash from operations compared with $374.9 million in the prior-year period. Adjusted free cash flow for the first half of the year was $113.6 million.
Liquidity
As of Jun 30, 2018, the company had $45.3 million of cash and cash equivalents with $5,867.9 million of long-term debt.
Zacks Rank & Stocks to Consider
Windstream currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include United States Cellular Corporation (USM - Free Report) , AT&T Inc. (T - Free Report) and Aquantia Corp. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United States Cellular has a long-term earnings growth expectation of 1%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 303.6%.
AT&T has a long-term earnings growth expectation of 3.4%. It surpassed earnings estimates twice in the trailing four quarters with an average positive surprise of 5.9%.
Aquantia surpassed earnings estimates once in the trailing four quarters with an average positive surprise of 50%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>