Windstream Q1 Profit Beats Estimates

reported stronger-than-expected earnings for the first quarter on Thursday. The Little Rock, Arkansas-based company reported quarterly profit of $5.3 million, or $0.05 per share, compared to $16 million, or $0.15 per share, in the year-ago period. Its revenue slipped 3.1 percent to $1.42 billion. However, analysts were expecting a loss of $0.06 per share on revenue of $1.43 billion. Consumer broadband service revenue rose 2 percent to $123 million in the first quarter, while overall consumer service revenue came in mostly flat at $312 million. Carrier service revenue dropped 7 percent to $177 million, while enterprise and small business service revenue came in at $741 million in the first quarter. Adjusted OIBDA came in at $495 million in the first quarter. "2015 has already seen significant progress, highlighted by the successful completion of the spinoff of Communications, Sales and Leasing ('CS&L') on April 24," said Tony Thomas, president and chief executive officer. "This transaction has made Windstream a stronger company with less debt and increased capacity to invest in our network and create value for our shareholders." Windstream affirmed its outlook for 2015. Windstream projects adjusted OIBDA margins of 34 percent to 34.5 percent for the year. Windstream shares fell 0.78 percent to $10.20 in pre-market trading.