Why Windstream Holdings, Inc. (WIN) Stock Is Plunging Today

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Windstream Holdings, Inc. (NASDAQ:WIN) shares are plummeting today as the company unveiled its quarterly earnings results and eliminated its dividend.

Windstream Holdings, Inc. (WIN)The company posted earnings at a loss of 37 cents per share, which was narrower than the 45-cent loss that Wall Street expected, per Zacks Investment Research. The figure was considerably worse than the one cent per share it gained in the year-ago quarter.

Revenue missed analysts’ projections as Windstream brought in $1.49 billion, below the consensus of $1.5 billion. The figure wass a 10% improvement compared to the year-ago figure.

CEO Tony Thomas commented on the company’s decent second-quarter figures thanks in part to its network assets and growing cloud-based applications that should take a larger chunk of the market share in coming quarters.

“Additionally, we continue to improve our cost structure and have significant opportunities to further drive down costs through reductions in network interconnection costs, upcoming synergies from the EarthLink and Broadview transactions and initiatives to advance our organizational effectiveness,” the Windstream boss added.

The EarthLink acquisition was completed in February, helping the company expand its national fiber footprint, and improve its products and services moving forward.

The company’s stock was hit hard by the fact that it decided to eliminate its quarterly dividend offering, choosing to implement a new capital allocation program.

WIN shares declined more than 34.7% by mid-afternoon Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/windstream-holdings-inc-win/.

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