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

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CenturyLink (CTL), formerly CenturyTel Inc, announced third-quarter 2009 results with adjusted (excluding non-recurring items or non-GAAP) earnings per share of 90 cents beating the Zacks Consensus Estimate of 81 cents. Non-recurring items includes integration costs associated with the Embarq acquisition (completed on Jul 1, 2009).  Adjusted net income surged to $269.1 million from $82.8 million registered in the year-ago quarter, driven by the contributions from Embarq. Reported net income (GAAP) of $280.8 million or 94 cents per share, reflects an increase from $84.7 million or 83 cents per share registered a year ago.  Revenue: The company reported operating revenue of $1.87 billion, a significant increase compared to $650 million reported a year ago, fuelled by the Embarq acquisition which contributed $1.3 billion in the quarter. Revenues for voice, network access and data services increased compared to the year-ago quarter.  Subscriber Total access lines at the ...

Frontier Communications (FTR) announced third quarter results with adjusted (excluding acquisition and integration costs) earnings per share of 18 cents, exceeding the Zacks Consensus Estimate of 16 cents. Net income increased 11% year over year to $52.2 million, primarily due to gain on debt repurchases and higher operating income that increased 5% year over year to $172.5 million.   Revenues Remains under Pressure    The company reported revenues of $526.8 million, reflecting a 6% decrease over the year-ago quarter. The year-over-year decline is attributable to lower local, long-distance and switched access revenues coupled with decline in basic access lines. However, this was partially offset by increases in data and Internet service revenues.   Revenues for local services declined 8% year over year to $193.6 million while data and Internet services revenue increased 4% to $160 million. Switched access service revenues declined 8% year over year to $91.2 million

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Frontier Communications Corp. (FTR) announced results for the second quarter of 2009 today with earnings per share of $0.09, below the Zacks Consensus Estimate of $0.13. Quarterly revenue of $532.1 million also fell short of the Zacks Consensus Estimate, reflecting a 5% decrease over the prior-year quarter.

The year-over-year decline in revenue is attributable to lower local service, subsidy and switched access revenue coupled with decline in basic access lines, partially offset by increases in data and Internet service revenues.

Quarterly net income was $27.9 million, down 50% from the year-ago quarter, primarily due to acquisition-related expenses of $10.8 million, higher interest expenses and lower operating income which fell 16% year over year to $136.6 million.

Revenue for local services declined 8% year over year to $198.3 million while data and Internet services revenue increased 6% to $160.6 million in the same period. Switched access service revenue declined

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Windstream Corp. (WIN) announced today that its first-quarter EPS of 24 cents, excluding items, squeezed past the consensus by a penny, although it experienced a 5.6% revenue dip amid economic turmoil.

Sales came in at $755 million, down from $800 million in the prior-year period.

Meanwhile, the company indicated that it expects to generate between $705 million and $775 million in free cash flow during this year, an increase of $20 million from its prior view.

Windstream added about 31,000 new high-speed Internet customers this quarter, which is almost double the previous quarter's levels. With the additions of these new customers, the company now has a total broadband customer base of over 1 million, up nearly 11% from last year.

The company also stated that it added more than 21,000 digital TV customers during the quarter.

The full-year consensus for this Zacks #2 Rank ("Buy") stock is pegged

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A significant piece of legislation that is part of President Obama’s stimulus package could open parts of the U.S. to new high-speed Internet services – giving local economies a boost. If so, we’ve identified one company that investors should consider buying in anticipation of a key piece of legislation that was passed last week.

High-speed Internet can exert a profound impact on how local businesses and consumers improve their own personal productivity and expand their entertainment venues. Our thinking here is very much along the lines of our “Cell Phone Indicator” that we use in emerging markets – improved communications boost the local economy.

The House Energy and Commerce Committee approved $6 billion in rules for billions in government funds to spur high-speed Internet networks in unserved and underserved areas.

The Internet funding portion of the stimulus bill — a potential huge boon to phone, cable, and wireless companies – helps fulfill President

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