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Windstream Corporation (NASDAQ:WIN) is scheduled to report its Q2 2012 results on Thursday, August 9, 2012, before the market opens. The Street expects EPS and revenue of $0.13 and $1.54 billion, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from Windstream, and the news from its closest competitors.

Windstream Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last three quarters. In the last quarter, it reported $0.13 EPS, just missing analysts' estimates of $0.14.

Windstream Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $0.13 based on 15 analysts' estimates, down from $0.19 a year ago. Revenue estimates are $1.54 billion, up from $1.03 billion a year ago. Analysts' median target price for the stock is $12.00.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On August 1, 2012, Windstream Corp. announced that it has been awarded a contract by the Defense Information System Agency (DISA) to provide Fort Lee with diverse fiber and Dense Wavelength Division Multiplexing (DWDM) services.
  • On July 26, 2012, Windstream Corp. announced that it has been selected by NeoVox Global to implement a contact center at NeoVox's new headquarters in Carthage, Mo. The 180-seat center, featuring Avaya Aura call center technology, is designed to handle thousands of inbound multimedia communications every day for Fortune 100 companies, including traditional voice, but also web-based chat, email, IM, even SMS text messages.
  • On July 2, 2012, Windstream announced the availability of its latest bundled offering for small and mid-sized businesses -- the Windstream Professional Bundle. For a flat monthly fee, the Windstream Professional Bundle includes business-class Internet and unlimited phone service, 24x7 computer repair and replacement of broken components, Internet security, online backup of critical business data, as well as a custom built website for the customer and one hour of monthly design services by Windstream's web experts.
  • On June 29, 2012, Windstream announced that its voice, data, and equipment bundle offering -- IP Simple Solutions -- is now available across the company's nationwide footprint. IP Simple is a Managed Unified Communications solution designed for small and medium-sized businesses (SMBs). It combines an award-winning business phone system from Allworx -- a Windstream company -- with Windstream's VoIP and Data solution for a complete end-to-end solution. Windstream's IP Simple bundle gives small and medium business customers an affordable monthly solution accessing the latest technology, without the need for capital investment in equipment.
  • On June 28, 2012, Windstream announced that John Q. Hammons Hotels & Resorts has selected the company to provide 24x7x365 high-speed Internet support services to 44 hotels, in addition to 29 other properties currently being serviced by Windstream.
  • On June 12, 2012, Windstream announced that Pratt Industries, Inc., has chosen it to provide customized managed Unified Communications services. As the fifth largest box manufacturer in the United States, and the world's largest privately held 100 percent recycled paper and packaging company, Pratt will now rely on Windstream to connect and centralize communications among its 72 locations nationwide.
  • On May 31, 2012, Windstream Corp. announced that it is restructuring its management ranks to increase the efficiency of decision-making and position the Company for continued success.
  • On February 22, 2012, Windstream Corp. announced that for fiscal 2012, it expects revenue to be in the range of $6.180-$6.305 billion, OIBDA in a range of $2.392-$2.462 billion and adjusted OIBDA in a range of $2.430-$2.500 billion.

Competitors

CenturyLink (NYSE:CTL), Frontier Communications (NASDAQ:FTR), Sprint Nextel (NYSE:S), AT&T (NYSE:T), and Verizon Communications (NYSE:VZ) are considered major competitors for Windstream and the table below provides the key metrics for these companies and the industry:

Windstream Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period:

WIN Chart

WIN data by YCharts

Competitors' Latest Developments

  • On August 2, 2012, AT&T Inc. announced that it has agreed to acquire NextWave Wireless, Inc. NextWave holds licenses in the Wireless Communication Services (WCS) and Advanced Wireless Service (AWS) bands.
  • On July 31, 2012, CenturyLink, Inc.'s Savvis and Ciber announced that they have entered into an agreement under which Savvis will purchase certain assets of Ciber's global IT Outsourcing (ITO) business for $7 million in cash at the time of closing, plus additional future consideration in the form of a cash earn-out payment based on results through December 2013.
  • On July 27, 2012, AT&T Inc. announced the repurchase of up to 300 million additional shares, representing approximately 5% of AT&T shares outstanding, with no expiration date.
  • On July 26, 2012, CenturyLink, Inc. announced that it will accept $35 million from the Federal Communications Commission's Connect America Fund (NYSE:CAF) to deploy broadband service to 45,000 homes in unserved rural areas in multiple states.
  • On July 26, 2012, Verizon Communications Inc. announced that it closed its previously announced acquisition of HUGHES Telematics, Inc.(HTI), setting Verizon on a course to accelerate growth through the delivery of advanced automotive and fleet telematics and machine-to-machine services.
  • On July 25, 2012, Frontier Communications Corp. announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on September 28, 2012 to holders of record of common stock at the close of business on September 7, 2012.
  • On July 25, 2012, Nirvanix announced a strategic channel alliance with CenturyLink, Inc. that enables customers to access Nirvanix Cloud Storage Services at higher speeds while significantly reducing bandwidth costs.
  • On July 24, 2012, Frontier Communications Corp. announced that it has signed a wholesale agreement with Hughes Network Systems, LLC. Frontier will distribute satellite-based broadband services, branded Frontier Broadband, that will deliver increased speed and capacity to households and small businesses within markets previously unserved or underserved by all broadband providers, including cable.
  • On July 16, 2012, Digital Realty Trust Inc. and CenturyLink, Inc.'s Savvis Inc. announced the completion of the joint venture acquisition of a 164,000-square-foot (15,236-square-meter) facility in Hong Kong.
  • On July 13, 2012, AT&T Inc. announced that it has reached an agreement with the International Brotherhood of Electrical Workers on a one-year contract extension, covering nearly 7,000 core wireline employees.
  • On July 5, 2012, Verizon Communications Inc. announced that Hydro and Verizon have entered into an agreement under which Verizon will deliver a managed global wide area network with integrated security and remote access solutions, an integrated partner firewall to enable third-party access to select business solutions and full professional service support.
  • On June 21, 2012, CenturyLink, Inc. announced that it has won a contract renewal worth $2.1 million over the next five years to provide telecommunications services to the U.S. Army base at Fort Stewart, Ga. The contract is for one year with four one-year options.
  • On June 19, 2012, Birdstep Technology ASA announced that Sprint has selected its EasySmart client to provide intelligent data traffic management for Wi-Fi and WiMAX.
  • On June 19, 2012, Reuters reported that Sprint Nextel Corporation has entered into a $19 million settlement to resolve a lawsuit by U.S. customers who accused the money-losing mobile service provider of improperly charging them for using their cell phones to send pictures.
  • On June 18, 2012, Frontier Communications Corp. announced that it has completed its previously announced debt tender offer and has applied the full Maximum Payment Amount of $500 million toward the repurchase of its 8.250% Senior Notes due 2014 (the 2014 Notes) and 7.875% Senior Notes due 2015 (the 2015 Notes).
  • On June 15, 2012, CenturyLink, Inc. announced that its wholly-owned subsidiary, Qwest Corporation, agreed to sell $400 million aggregate principal amount of 7.00% Notes due 2052.
  • On June 14, 2012, Frontier Communications Corp. and The Berry Company, LLC, a local search services company, announced their continued partnership to produce FrontierPages through 2014.
  • On June 14, 2012, CenturyLink, Inc. announced that it has won a $233 million task order to provide primary managed data networking services over the next five years to the Social Security Administration (SSA) under the Networx Universal contract.
  • On June 13, 2012, Savvis, a CenturyLink company announced a strategic agreement with Hortonworks, enabling Savvis to leverage Hadoop to offer cloud-based big data solutions for enterprises.
  • On June 7, 2012, Verizon Communications Inc. announced that its Board of Directors declared a quarterly dividend of $0.50 per outstanding share, unchanged from the previous quarter.
  • On June 4, 2012, Reuters reported that Verizon Communications Inc., is looking to cut its workforce by 1,700 people, or almost 1%, through a buyout offer for technicians and call-center employees.
  • On June 1, 2012, Verizon Communications Inc. announced a definitive merger agreement under which Verizon will acquire Hughes Telematics, Inc. (HTI) for $12.00 per share in cash, or a total of $612 million.
  • On May 29, 2012, Sprint Nextel Corporation announced that it has entered into a new $1 billion credit facility with Deutsche Bank and a syndicate of other banks to finance equipment purchases from Ericsson for Network Vision.
  • On May 17, 2012, Frontier Communications Corp. announced that it has commenced a registered offering of $500 million aggregate principal amount of senior notes due 2021.
  • On May 17, 2012, Frontier Communications Corp. announced that it has priced its registered offering of $500 million aggregate principal amount of 9.250% senior notes due 2021 (Notes).
  • On May 15, 2012, AT&T Inc.'s AT&T Government Solutions announced that it has been selected as a prime vendor under the Tactical Communications Equipment and Services (TacCom) contract.
  • On May 11, 2012, Reuters reported that AT&T Inc. has held talks to buy Leap Wireless International, Inc. in recent months. These talks were serious enough for Leap Wireless to hire bankers to advise it on a potential deal.
  • On May 9, 2012, CenturyLink, Inc. announced that for the second quarter 2012, it expects Operating Revenue to be in the range of $4.55 billion to $4.60 billion and adjusted diluted EPS to be $0.59 - $0.64. For fiscal 2012, it expects operating revenue to be in the range of $18.2 billion to $18.4 billion, and adjusted diluted earnings per share (NYSEARCA:EPS) to be $2.35 - $2.55. According to I/B/E/S Estimates, analysts on an average were expecting the company to report revenues of $4.58 billion and EPS of $0.59 for the second quarter of 2012; revenues of $18.3 billion and EPS of $2.38 for fiscal 2012.
  • On May 8, 2012, Frontier Communications Corp. announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on June 29, 2012 to common stock holders of record at the close of business on June 8, 2012.
  • On May 7, 2012, CenturyLink, Inc.'s Savvis announced that FXall has renewed its hosting and infrastructure services agreement with Savvis, and will take additional data center space to accommodate client demand and ongoing market growth.

Technical Overview


The stock has a market capitalization of $5.91 billion, and is currently trading at $10.04 with a 52 week range of $9.00 - $13.08. The stock's year-to-date performance has been -10.36%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Windstream Corporation Reports Q2 Earnings On August 9