Inside Windstream’s March Decline



A 27% fall last month

Windstream (WIN) shares fell 27% last month. In the week ended March 10, 2017, after the firm reported disappointing 4Q16 results, WIN shares fell 14.2%. Specifically, the company announced 4Q16 revenues of $1.31 billion, and while its service revenues fell only 7% YoY (year-over-year) to $1.29 billion, the company’s product revenues fell a significant 48% YoY to $20 million.

WIN’s net loss in 4Q16 was $87 million, or -$0.94 per share. By comparison, the firm reported net income of $140.5 million and EPS (earnings per share) of $1.41 in 4Q15. Windstream’s non-GAAP (generally accepted accounting principles) EPS came in at -$0.51.

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In 4Q16, Windstream’s high-speed Internet customers fell 18% YoY to 11,900, whereas household customers also dropped 5% YoY to 23,900. At the end of fiscal 2016, the firm had 1.3 million household subscribers, which represents a fall of 6% YoY, while its high-speed Internet subscribers fell 4% YoY to 1.05 million.

The 5.2% fall on March 22

Windstream (WIN) stock fell 13.2% in the week ended March 24, 2017, after a 5.6% decline on Wednesday, March 22, following a reinstated “sell” rating on the stock from Goldman Sachs (GS) and a weak outlook for telecom firms like Frontier Communications (FTR) and Century Link (CTL). Notably, the telecom sector is expected to face a difficult calendar 2017 driven by lower broadband subscriptions.

Continue to the next part for a closer look at what happened to Frontier in March.


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