Windstream Holdings, Inc. (NASDAQ:WIN): A Question of Poor Management or Poor Industry


Dallas, Texas 11/15/2013 (Financialstrend) – Windstream Holdings Inc. (NASDAQ:WIN) is an American company, which is based in Little Rock, Arkansas, and it provides communication services to its customers. It is focusing on providing services to domestic customers and is operating in the industry of telecommunication. Its primary business service offerings are comprised of multi-site networking, integrated voice and data services, and managed services, data center services, carrier services and voice services.

The company also provides managed services and cloud computing services to its businesses nationally. The company generates 58.6% of its revenues from the business segment, which is comprised of advanced data services, integrated voice and data services, and traditional voice and long-distance services to small-business customers and enterprises.

Company’s strategy:

Currently, Windstream Holdings Inc. (NASDAQ:WIN) is shifting its composition of revenue in the direction of broadband and enterprises services. There are some factors which can play a deciding role in the future of the company.

In 2012,in 16 states, the company was awarded with 16 broadband stimulus projects.Clearly, the company is trying to penetrate into the broadband market. Jeff Gardner, CEO and president said, “Once we build out these stimulus sites, they have very high penetration rates. Well over 50 percent of the homes passed will subscribe to our service.”

Though the company is making more revenues in 2012, the Earnings per Share (EPS) of the company reduced due to the cost structure of the company and this describes the declining trend of the share price.

Industry Growth:

In 2013, the telecom industry is expected to grow by merely 0.9% and also in 2014 it is expecting to grow further by 2.3%. Wireless or mobile broadband is also expecting to grow in the future, so, even with the slow growth; there is still some hope for the telecom industry.

Price update:

Windstream Holdings Inc. (NASDAQ:WIN) showed a volume of 4.39 million shares by the end of last trade whereas the average volume of the stock remained 5.57 million shares. The stock opened the session at $8.27 and then closed at $8.26.