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.

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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.

Author: Steve Clark

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.

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