Back to top

Analyst Blog

Windstream Corporation (WIN - Analyst Report) – one of the largest U.S. rural local exchange carriers (RLEC) – received orders worth $12 million from the U.S. Department of Veterans Affairs in Region 4. The area comprises 11 states in the northeastern U.S.

Windstream will offer its triple-play voice, data and Internet services for the U.S. Department of Veterans Affairs. The service contract will start by the end of this year and may extend up to five years totaling a value of $20 million.

The Veterans Affairs (VA) department formed four geographic regions with multiple Veterans Information Service Networks. Moreover, each region will be assigned a single vendor in every region. Thus, Region 4 has been allotted to Windstream. Region 4 covers more than 300 VA facilities, including Veteran Affairs hospitals, clinics, cemeteries, and call centers, among others.

Windstream reported weak second-quarter 2013 results due to voice and digital television subscriber loss and reduced intrastate access rates. Both its top and bottom lines missed the Zacks Consensus Estimate. Voice lines and digital television customers witnessed a year-over-year decline of 5.5% and 4.9%, respectively, while high-speed Internet fell a marginal 1.3%.

Two months back, Windstream teamed up with Mitel to offer MiVoice and MiCollab cloud-based technologies for Windstream’s corporate clients. The company has also teamed up with LifeSize Communications, a division of  Logitech International SA (LOGI - Analyst Report), to provide high definition (HD) video conferencing services to customers using Windstream's IP networking solutions.

Thus, we believe that such contract wins coupled with collaboration with firms will not only improve Windstream’s performance but also drive subscriber growth. This will provide Windstream a cutting edge over the other industry players, namely, Frontier Communications (FTR - Analyst Report) and Consolidated Communications Holdings Inc. (CNSL).

Windstream currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%