Windstream Slips on Disappointing Results

Updated to provide further detail from the company's third-quarter earnings report.

LITTLE ROCK, Ark. (TheStreet) -- Shares of Windstream(WIN Quote), a local telephone company and high-speed Internet provider, slipped 2% Monday during a session that saw the broader equities markets otherwise surge, after the company posted results that appeared to disappoint.

The company reported net income of $80 million, or 18 cents a share, but this included a series of charges -- from pension expenses, severance payouts, the amortization of wire-line franchise rights, and integration costs from an acquisition -- that amounted to 6 cents a share.

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According to Windstream spokesman Rob Clancy, however, the investment community ought to have baked into their estimates the $15 million in pension expenses and the $5 million in amortization. On an EPS basis, then, the company's profit, for the purposes of comparing to Wall Street projections, would come to just below 20 cents.

A poll of analysts by Thompson Reuters pegged Windstream's EPS at 21 cents.

Revenue also fell shy of the Wall Street consensus target. Windstream's third-quarter top line came to $734 million, while analysts were expecting $747 million.