Uniti Earnings: Slow and Steady, but Financial Concerns Are Driving the Stock

While Uniti’s stock has gotten crushed in 2023, the firm reported a typical first quarter. With its Windstream lease still making up most of revenue and nearly 90% of EBITDA, Uniti’s financial results remain very predictable. There was little change to the firm’s level of investment or success in growing the non-Windstream side of the business, and the company took steps in the quarter to solidify its financial footing. While the stock had a nice pop following the results, we think the current price still reflects concern that the company will go bankrupt. We think Uniti will be able to meet its financial obligations and we are maintaining our $12 fair value estimate.