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Windstream Announces Implementation of SD-WAN by U.S. Firm

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Windstream Holdings, Inc.’s business segment, Windstream Enterprise, recently announced that its SD-WAN Concierge has been implemented by an undisclosed U.S.-based national logistics and delivery transport company. Notably, this facilitates uninterrupted connectivity across 80 locations as well as terminal operations in more than 30 states, enabling the delivery firm to conduct its complex network operations.

With the implementation of Windstream’s SD-WAN with dual access, the firm has significantly improved network reliability. Also, its management portal has helped the firm to simplify troubleshooting problems apart from resolving network issues. This allows the firm to better serve its customers during its tight delivery schedules.  As a matter of fact, this solution will offer the firm real-time visibility into its operations, thus enhancing productivity.

Existing Business Scenario

Windstream is seeking diversification from legacy telecom services to more business, enterprise and wholesale opportunities. To meet this end, the company has made a significant financial investment to upgrade its network and product portfolio, including significant advances in software-defined wide area network (SD-WAN) capabilities and a new Cloud Core architecture. In addition, the acquisitions of EarthLink and Broadview have also played a major role in boosting the company’s SD-WAN and cloud suite.

Windstream is realigning its wireless network toward a software-centric model to meet increasing business demands and customer needs. The service provider’s SD-WAN service is experiencing robust demand from customers across different sectors like regional banking, healthcare, retail and manufacturing. The launch of a multi-featured SD-WAN solution and its cloud-to-cloud disaster recovery management solutions should rake in considerable profits.

However, this Zacks Rank #3 (Hold) company has lost 0.3% in the past month against the industry’s growth of 1.7%. The company remains under pressure with losses in the wholesale business. These, in particular, include diminishing access lines, lower switched access rates and fewer minutes of usage. Windstream expects wholesale revenues to improve, albeit at a slower pace.

Key Picks

Some better-ranked stocks in the same space are United States Cellular Corporation (USM - Free Report) , ATN International, Inc. (ATNI - Free Report) and CenturyLink, Inc. . While United States Cellular and ATN International sport a Zacks Rank #1 (Strong Buy), CenturyLink carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United States Cellular surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 108.11%.

ATN International outpaced estimates thrice in the preceding four quarters, the average earnings surprise being 138.12%.

CenturyLink outpaced estimates thrice in the preceding four quarters, the average earnings surprise being 18.16%.

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