by Lance Turner
Posted 1/7/2013 04:14 pm
Updated 2 years ago
Shares of Windstream Corp. of Little Rock (NYSE: WIN) rose 3.7 percent on Monday after the telecommunications firm dramatically reduced its outlook for 2013 tax obligations.
THE SPARK: Windstream said it now expects its 2013 tax obligations to total between $40 million and $50 million, down from a May prediction of about $250 million.
The company attributed the drop to the extension of a federal tax break approved by Congress and the White House last week, as well as other changes in the company's cash tax assumptions.
Why the reduction? Thank that fiscal cliff deal Congress reached last week. The deal includes the extension of a tax break that "allows profitable companies to write off large capital expenditures immediately - rather than over time - giving some of them sizable tax shelters."
Windstream shares closed at $9.67 on Monday.