What's In The Cards For Windstream (WIN) In Q4 Earnings?
Zacks Investment Research | Feb 19, 2018 09:19PM ET
Windstream (NASDAQ:WIN) is slated to report fourth-quarter 2017 results on Feb 22, before market open. Based in Arkansas, the company is a leading rural local exchange carrier in the United States.
The Zacks Consensus Estimate for revenues is pegged at $1.49 billion, reflecting year-over-year improvement of 13.7%. The Zacks Consensus Estimate is pegged at a loss of 39 cents per share, indicating year-over-year growth of 23.5%.
Meanwhile, the company has a negative earnings surprise history. Earnings lagged the Zacks Consensus Estimate in three of the previous four quarters, with an average miss of 57.0%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence Q4 Earnings
We appreciate Windstream’s focus on improving sales, cutting costs and pricing initiatives, which are expected to boost profitability and check churn. Meanwhile, the company is seeking diversification from legacy telecom services to more business, enterprise, and wholesale opportunities. To meet this end, Windstream has made a significant financial investment to upgrade the company’s network and product portfolio, including significant advances in software-defined wide area network (SD-WAN) capabilities and a new Cloud Core architecture. Additionally, the acquisitions of EarthLink and Broadview have also played a major role in boosting the company’s SD-WAN and cloud suite.
The launch of a multi-featured SD-WAN solution and its cloud-to-cloud disaster recovery management solutions should rake in considerable profits. Expansion of its metro fiber network business in newer areas and its aim to extend the deployment of G.fast technologies over traditional copper telephone wires bode well.
The company announced SDN-enabled multi-vendor services partnerships with Ciena Corporation (NYSE:CIEN) , Infinera Corporation (NASDAQ:INFN) and Coriant in the MEF17 Proof of Concept showcase. MEF17 focuses on advancing Third-Network connectivity and cloud services for the digital economy & the hyper-connected world.
However, in the past three months, Windstream has not performed well. The stock price has declined 35.5%, underperforming the Zacks Investment Research
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