NEW YORK (TheStreet) -- Shares of Windstream Holdings (WIN) are down 6.93% to $8.73 after naming a new chief financial officer, less than a day after Tony Thomas was appointed CEO, a change that could postpone the company's plan to spin off its telecommunications network assets into an independent real estate investment trust, according to Raymond James, Bloomberg reports.
Windstream President and CEO Tony Thomas today announced that Bob Gunderman has been named CFO, a day after Thomas took over for Jeff Gardner as CEO, after serving as the company's president of real estate investment trust (REIT) operations.
The telecommunications services provider, which focuses on residential and business customers in rural communities in the U.S., has underperformed, down more than 14% since its third quarter earnings miss, as subscriber results continued to be largely below expectations, according to Nomura.
"Subscribers have now fallen (3.5%) year over year while consumer voice lines fell (6.4%), a decline that also continues to accelerate," Nomura analyst Adam Ilkowitz said in a note.
Separately, TheStreet Ratings team rates WINDSTREAM HOLDINGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate WINDSTREAM HOLDINGS INC (WIN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."