Windstream Holdings Inc (NASDAQ:WIN): What Are The Future Prospects?
In December 2017, Windstream Holdings Inc (NASDAQ:WIN) released its most recent earnings announcement, which suggested company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve laid out key numbers on how market analysts predict Windstream Holdings’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Windstream Holdings
Analysts’ outlook for next year seems positive, with earnings becoming less negative, generating -US$434.45M in 2019. However, this positive earnings level of -US$434.45M is expected to stay relatively flat over the next three years.
While it’s helpful to be aware of the growth rate each year relative to today’s figure, it may be more valuable to determine the rate at which the business is rising or falling every year, on average. The advantage of this approach is that we can get a bigger picture of the direction of Windstream Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 55.86%. This means that, we can presume Windstream Holdings will grow its earnings by 55.86% every year for the next couple of years.
Next Steps:
For Windstream Holdings, there are three fundamental aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is WIN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WIN is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of WIN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
