Windstream Holdings (WIN) Surges on Heavy Volume

NEW YORK (TheStreet) -- Windstream Holdings (WIN) is climbing on heavier-than-normal volume Tuesday.

By early afternoon, shares have gained 6.9% to $8.81. Trading volume of 15.4 million exceeded its three-month daily average of 8.7 million.

In a press release earlier, the network communications company announced the release of its new channel pricing tool, an offering which allows Windstream customers to easily quote products and services.

"This pricing tool was designed to eliminate unnecessary review steps, increase efficiencies and accelerate the quoting process -- all with the ultimate goal of delivering the Windstream 'smart solutions, personalized service' brand promise to our channel partners and their clients," said SVP and enterprise chief marketing officer Matt Preschern said in the statement.

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TheStreet Ratings team rates WINDSTREAM HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WINDSTREAM HOLDINGS INC (WIN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 1084.0% when compared to the same quarter one year prior, rising from $10.00 million to $118.40 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, WINDSTREAM HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for WINDSTREAM HOLDINGS INC is rather high; currently it is at 59.42%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.93% trails the industry average.
  • WINDSTREAM HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, WINDSTREAM HOLDINGS INC increased its bottom line by earning $0.39 versus $0.29 in the prior year. For the next year, the market is expecting a contraction of 2.6% in earnings ($0.38 versus $0.39).
  • WIN, with its decline in revenue, slightly underperformed the industry average of 1.2%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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