NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by TheFortuneFinancial.com.

New design, navigation and content provides telecom and data solutions for all companies – small to enterprise

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Ridgewater Equity (RWE).

See the rest of the story here.

Theflyonthewall.com is Wall Street's specialist in breaking equity news. Veteran traders build a proprietary feed of news that's faster and more relevant than any other source. Try us for free and discover for yourself.

Market-trouncing returns could be written in these four stars.

Windstream Corp. (WIN), a leading rural telecom carrier, reported operating results for the third quarter with adjusted earnings per share of 24 cents, exceeding the Zacks Consensus Estimate of 21 cents. Adjusted EPS excludes one-time items such as restructuring charges, merger and integration costs and non-cash pension expense. Reported net income of $80 million (18 cents [...]

(WIN) Windstream Corporation Beat Expectations – But Sales Dip

Windstream Corp. (WIN), a leading rural telecom carrier, reported operating results for the third quarter with adjusted earnings per share of 24 cents, exceeding the Zacks Consensus Estimate of 21 cents. Adjusted EPS excludes one-time items such as restructuring charges, merger and integration costs and non-cash pension expense.
 
Reported net income of $80 million (18 cents a share) reflects a 24% year-over-year decline on account of lower revenues, which declined 8% year over year to $734 million.  Service revenues fell 5% year over year to $704.9 million while product revenues declined 44% to $29.4 million. Average monthly service revenue per customer remained stable year over year at $79.99. Operating income declined 17% year over year to $225.4 million.
 
Windstream continues to experience steady decline in its fixed-line business given the rapid customer migration to cellular services. Total access lines declined by roughly 27,000 lines in the quarter to reach approximately 2.93 million lines, down 5.2% year over year. This was, however, partly offset by net addition of 26,000 high-speed Internet customers, bringing the total broadband customer base to approximately 1.05 million (up 9% year over year).
 
Momentum for digital TV business continues with more than 11,000 new customers added during the quarter. Windstream’s video subscriber base reached roughly 323,000, representing 18% penetration of primary residential lines. 
 
The company generated $242 million cash from operation in the quarter and spent $67 million in capital expenditure, resulting in a free cash flow of $175 million. Windstream exited the quarter with $290 million in cash and cash equivalents and $5.2 billion in total debt.
 
Windstream remains committed to its share repurchase initiatives leveraging healthy free cash flow generated through its ongoing cost-cutting measures. The company repurchased 8.9 million shares in the third quarter, returning roughly $89 million to its shareholders. Approximately $80 million remaining under the current $400 million share buyback authorization which is set to expire at the end of 2009.
 
Windstream continues to acquire smaller rural carriers to expand its customer base. The company has received unanimous approval from Pennsylvania Public Utilities Commission for its impending acquisition of rural phone and Internet service operator D&E Communications (DECC) for $159 million. The acquisition will strengthen Windstream’s foothold in Pennsylvania, providing 165,000 access lines and 44,000 high-speed Internet customers.

To boost its high-speed Internet business, Windstream is buying privately held regional competitive local exchange carrier NuVox Inc for roughly $643 million. The acquisition will strengthen Windstream’s presence across the Southeast and Midwest states, where NuVox has a strong market presence. The deal will also provide meaningful cost synergies and 90,000 new business customers across 16 states.

Read the full analyst report on "WIN"
Read the full analyst report on "DECC"
Zacks Investment Research

Kraft (KFT) is due to formalize its Cadbury (CBY) bid for about $16.7 billion as the deadline for an offer hits Northrop Grumman (NOC) announced it is selling its TASC consulting operations to two private equity firms for $1.65 billion About $30 billion was the agreed-to valuation which General Electric (GE) and Comcast (CMCSA) ...

• Kraft (NYSE:KFT) is due to formalize its Cadbury (NYSE:CBY) bid for about $16.7 billion as the deadline for an offer hits

• Northrop Grumman (NYSE:NOC) announced it is selling its TASC consulting operations to two private equity firms for $1.65 billion

• About $30 billion was the agreed-to valuation which General Electric (NYSE:GE) and Comcast (NASDAQ:CMCSA) placed on the joint venture between NBC Universal and Comcast

• Goldman Sachs (NYSE:GS) upgraded Adobe Systems (NASDAQ:ADBE) to "buy," and lifted its price target to $42

• Goldman Sachs (NYSE:GS) added Lexmark (NYSE:LXK) to its Conviction Sell list

• KBW upgraded Blackstone Group (NYSE:BX) shares to "outperform" with a price target of $18.50

• Windstream (NYSE:WIN) reported third-quarter earnings of 24 cents a share, two cents over Zacks estimates, on revenues of $734 million, below Zacks estimates of $747 million

• DISH Network (NASDAQ:DISH) reported third-quarter earnings of 18 cents, 25 cents under Zacks estimates, on revenues of $2.89 billion, which missed Zacks estimates of $2.93 billion

 

Zacks Investment Research

There are times in the market when the action make little sense. For example, most investors probably expected the market to decline when the Labor Dept. reported that the Unemployment Rate hit the highest level since 1983. However, we just might be ent[More...]

Tom Dorsey and Sue Morrison - Mud Wrestling and the Markets

Yahoo, eBay, Centene Corp, EMAK Worldwide, Alloy, Inc, Rentech, Inc, Teva Pharmaceuticals, Magic Software Enterprises