Windstream Communicates Weak First Quarter

Windstream (NASDAQ: WIN) is down on Thursday after missing first-quarter estimates.

The Little Rock-based firm's EPS declined 10 percent year-over-year to $0.09, falling short of expectations of $0.11.

Revenue dropped two percent to $1.5 billion, just shy of the $1.53 billion Wall Street consensus.

Positive Data

Windstream's data and integrated services revenue grew most during the quarter, rising eight percent to $400 million. Gains in integrated voice and data services, data center and managed services drove the increase.

Consumer broadband service revenue climbed a healthy five percent to $117 million. Growth on this front was driven by increased sales of broadband features and faster speeds.

Meanwhile, wholesale revenue plunged 17 percent to $152 million due to lower switched access revenue from declining consumer voice lines and lower intrastate access rates.

All other aspects of the telecom provider's business grew or declined by less than five percent.

Board Switch

Windstream announced the appointment of Jeffrey T. Hinson as chairman of the board on March 11. Hinson, who previously served as chairman of the audit committee, assumed the position on May 1.

Replacing Hinson as chairman of the audit committee is Francis X. Frantz.

Former Chairman of the Board Dennis E. Foster continues to serve on the board and its compensation committee.

Suite Deal

On April 8, the company announced a contract to provide the US General Services Administration (GSA) with voice, Internet and data services. Under the deal, all federal agencies with local offices in Iowa, Kansas, Missouri and Nebraska will have access to its suite of services. According to Windstream, the agreement gives it the potential to serve over 60,000 federal employees in over 400 buildings and generate multi-million dollar revenue annually.

A Broad Fortune

On Monday, Windstream confirmed its spot on the 2013 Fortune 500 list, ranking 414th overall. This marks the first time the rural Internet provider made the list.

Dividend Communicated

On Wednesday, Windstream declared a $0.25 per share dividend on its common stock. It will be paid on July 15 to shareholders as of June 28.

Stock Falls a Country Mile

The weak first-quarter earnings report has blown Windstream's stock back to its lowest point in over a month. It has fallen to just above $8 as of this writing.

Windstream is down around 5.5 percent on Thursday.