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Tickers in this Article: AMX, WIN, PCS
One of the leading advanced networking solutions, Windstream Corporation (WIN) has launched its latest enterprise offering for SMEs called Windstream Professional Bundle. Windstream's Professional Bundle includes service offerings like enterprise class Internet and unlimited voice call services, around the clock technical support, Internet security and data protection, customized websites, and monthly expertise from Web consultants on web design and support.

The new enterprise offering particularly caters to those business houses that lack a specialized support system to manage and maintain their IT requirements.  The service aims at minimizing business cost and complex network requirements with a one stop solution for enterprise-based IT needs.

The new launch comes on the heels of Windstream's another offering called IP Simple solution that targets the enterprise section. IP Simple provides a multiple PBX phone system which is an internal telephone network that shares a number of lines to make external phone calls.

Windstream continues to focus on improving its position in the business solutions market. Despite the declines in the wholesale enterprise segment, the company boosts its efforts to expand service offerings to businesses with VoIP services, data bundles, cloud and managed services, data center services, and fiber transport, and expand distribution channels. We believe these solutions will help Windstream to significantly improve its revenue from the enterprise segment by addressing the specific needs of small and medium business customers, thus offsetting revenue pressure from peers like America Movil S.A. de C.V. (AMX) and MetroPCS Communication Inc. (PCS).

In addition, Windstream is also focusing on re-branding its consumer products with advanced internet and entertainment services. This will be based on Windstream's internet service that comes with a Roku box that includes several entertainment applications to enhance pay TV service. The company's strategy of bundling consumer voice service with high-speed Internet service provides further advantage to its ability to add new subscribers while reducing churn (the tendency of customers to switch providers).

The current Zacks Consensus Estimates for Windstream is pegged at 13 cents for the second quarter with a growth rate estimate of (32.71%). For 2012 and 2013, the Zacks Consensus Estimates stands at 52 cents and 58 cents with growth rate of (33.17%) and (11.39%), respectively.

We are maintaining our long-term Neutral recommendation on Windstream Corporation. Currently, the stock has a Zacks #3 Rank, implying a short-term Hold rating.

 
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