Earnings Preview: Windstream

Windstream Corp. (WIN) is expected to report Q2 earnings Friday before the open with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 26c on revenue of $813.73M. The consensus range is 25c to 28c for EPS, and revenue range of $803M to $820M, according to First Call. The company lowered its FY08 cap-ex guidance when it reported its Q2 earnings results. Windstream now expects to spend between $300M to $320M in capital expenditures for the year, resulting in a lower expected dividend payout ratio of 56% to 61% for 2008.

Analyst Views

Gabelli stated in August that it believes Windstream can sustain its $1 per share dividend for five years, and it believes the yield is attractive. The firm maintained its Buy rating. Windstream was upgraded to Buy from Hold at Stifel Nicolaus in early October. The firm upgraded the company citing valuation.

Comments

[macsmart:]

Buying this at this low price should be a no brainer. With Obama going for alternative energy sources, and this big dividend which appears to be safe...it should do very well in the next year.

2008 Dec 17 04:51 PM