Windstream Holdings, Inc. (NASDAQ:WIN) Wins Contract

Windstream Holdings, Inc. (NASDAQ:WIN)

Shares of Windstream Holdings, Inc. (NASDAQ:WIN) rose nearly 3.0% in the last session after the company announced a contract win with a major building supplier with operations across the US and Canada.

The stock jumped 2.99% to settle at $2.07, pushing Windstream Holdings, Inc. (NASDAQ:WIN)’s market cap to $383.6 million. The stock traded between a low of $2.01 and a high of $2.09 on the day. Despite the gain, Windstream has dropped more than 71% since the beginning of the year and has declined more than 75% since a year ago.

Considering where Windstream Holdings, Inc. (NASDAQ:WIN) closed in the last session, the stock is trading close to its one-year low. Over the last year, Windstream has traded between a low of $1.87 and a high of $10.45.

Windstream Holdings, Inc. (NASDAQ:WIN)
One month WIN stock price chart

Windstream wins large SD-WAN contract

The news that moved the Windstream Holdings, Inc. (NASDAQ:WIN) stock in the last session was the announcement of a potentially large contract, which could unlock more business for the company.

Windstream Holdings, Inc. (NASDAQ:WIN) said that a major, but unidentified, building supplier has selected Windstream to provide SD-WAN and Unified Communications as a Service (UCaaS) solutions. It said the solutions would enable the customer to increase the connectivity and productivity for its 3,500 workers located across the U.S. and Canada.

For the SD-WAN solution, the client selected Windstream’s SD-WAN Concierge service. This package includes what Windstream labels a “personalized and proactive guidance” from a dedicated technical service manager.

According to Windstream Holdings, Inc. (NASDAQ:WIN), its SD-WAN solution offers customers better network agility, seamless scalability as well as optimized performance. Windstream also touts its SD-WAN Concierge service for its cost benefits.

$28.7 billion revenue opportunity in UCaaS market

The customer tried Windstream Holdings, Inc. (NASDAQ:WIN)’s SD-WAN solution in four of its locations before it committed to the contract. The customer will now roll out Windstream’s SD-WAN Concierge to all of its 210 locations.

Under the UCaaS package, Windstream Holdings, Inc. (NASDAQ:WIN) is providing the customer with an integrated communications service that supports voice, instant messaging, and video conferencing.

According to research firm MarketsandMarkets, UCaaS market will be worth $28.7 billion by 2021, up from $17.4 billion in 2016. This shows the significant revenue potential Windstream has in this industry.

Winning large customers is not only great for Windstream Holdings, Inc. (NASDAQ:WIN) because of the increased revenue streams, but the wins also help raise the company’s profile in advanced communications technology market. Windstream, for instance, can reference its large customers to help it win more business.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $WIN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Windstream Holdings, Inc. (NASDAQ:WIN) Stock Keeps Sliding

Windstream Holdings, Inc. (NASDAQ:WIN)

Windstream Holdings, Inc. (NASDAQ:WIN) stock has lost almost 50% of its value since the company eliminated its dividend and replaced it with a stock repurchase program. The technology company’s stock has made a new 52-week low in seven consecutive trading sessions on heavy volumes.

Windstream Holdings, Inc. (NASDAQ:WIN)
WIN stock price chart

Yesterday Windstream Holdings, Inc. (NASDAQ:WIN) announced the first update to its portfolio of leading Unified Communications as a Service (UCaaS) solutions after the Broadview Networks’ acquisition. Broadview’s OfficeSuite, paired with Windstream’s SD-WAN solution, provides users with a UCaaS experience that combines services such as phone, contact center, chat, video, and collaboration with Windstream’s SD-WAN solution.

WAN technology has been an IT mainstay for voice and data networking infrastructure, but WAN technology has a higher possibility of downtime and latency incidents. Cloud, or hybrid, architectures and the higher cost of adding locations have required some companies to adjust their WAN strategy. Windstream Holdings, Inc. (NASDAQ:WIN)’s SD-WAN solution employs software-defined networking (SDN) to dynamically route traffic over a combination of private and public access types to reach multiple locations. Companies can maintain control over their network from a convenient centralized location rather than managing numerous routers, firewalls, and switches.

Windstream Holdings, Inc. (NASDAQ:WIN) stock target price is pegged at $5.58 by a consensus group of analysts. Its sales have contracted marginally since 2012 when the company posted a figure of $6.14 million. For 2016 the figure was announced at $5.39 million. However, per share earnings have been highly inconsistent. 2012 had a per share profit of $1.68, followed by per share figures of $2.35), (-$0.45), $0.24, and, for 2016 (-$4.11). Last week, Windstream posted a Q2 net loss of (-$68) million, or (-$0.37) per share, on revenues of $1.49 billion.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $WIN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Windstream Holdings, Inc. (NASDAQ:WIN) Implodes On Dividend Cancellation

Windstream Holdings, Inc. (NASDAQ:WIN)

Shares of Windstream Holdings, Inc. (NASDAQ:WIN) felt shareholder’s wrath after the company announced plans to eliminate its quarterly dividend. The stock plummeted 36.02% to end Thursday’s trading session at $2.38 a share. The sell-off also came on the hells of the company reporting disappointing second quarter results where earnings fell short of analysts’ expectations.

Windstream Holdings, Inc. (NASDAQ:WIN)
One month daily candlebar chart for WIN

Dividend Cancellation

Windstream Holdings, Inc. (NASDAQ:WIN) bills itself as a leading provider of advanced network and technology solutions for consumers and enterprises. The company offers a wide range of bundled services including broadband, security solutions, as well as voice and digital TV. It also offers cloud solutions and unified communications services.

Thursday’s sell-off sent Windstream Holdings, Inc. (NASDAQ:WIN) shares to all-time lows as it registered a new 52- week low of $2.37 a share. The stock has underperformed the overall market ever since it traded at highs of $8.50 a share at the start of the year.

A move to cancel a double digit percentage dividend has not gone well with investors as it was one of the stock’s attractive features. The stock continues to hit lower lows even after company announcing plans to return value to shareholders through a $90 million stock buyback program.

Q2 Earnings

A net loss of $68 million compared to a profit of $1.5 million reported a year earlier also continues to fuel a bearish tone on the stock. The broadband and communication company reported revenues of $1.49 billion – below Wall Street expectations of $1.5 billion.

Chief executive officer, Tony Thomas, has sought to dispel investors’ concerns by reiterating they had a solid second quarter as revenues grew year-over-year. The executive also remains confident about the company’s prospects in the cloud business.

“Additionally, we continue to improve our cost structure and have significant opportunities to further drive down costs through reductions in network interconnection costs, upcoming synergies from the EarthLink and Broadview transactions and initiatives to advance our organizational effectiveness,” said Mr. Thomas.

For The current quarter, Windstream Holdings, Inc. (NASDAQ:WIN) expects service revenue of between $2.02 billion and $2.04 billion helped by the Broadview Networks acquisition. Capital expenditures, on the other hand, should range between $790 million and $840 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $WIN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.