The Gory Details on Windstream's Double Miss

Windstream (Nasdaq: WIN  ) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Windstream missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.

Gross margins were steady, operating margins shrank, net margins shrank.

Revenue details
Windstream chalked up revenue of $1.50 billion. The 13 analysts polled by S&P Capital IQ expected to see revenue of $1.53 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. Non-GAAP EPS of $0.10 for Q1 were 23% lower than the prior-year quarter's $0.13 per share. GAAP EPS of $0.09 for Q1 were 18% lower than the prior-year quarter's $0.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.4%, much about the same as the prior-year quarter. Operating margin was 16.4%, 150 basis points worse than the prior-year quarter. Net margin was 3.5%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $6.11 billion. The average EPS estimate is $0.43.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Windstream is hold, with an average price target of $9.73.

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