CenturyLink, Inc. (CTL
CTL Earnings In Brief
-The company announced operating revenues of $4.52 billion, which was slightly above the analyst consensus of $4.51 billion.
-The company’s adjusted earnings came in at $375 million, or 63 cents per share; this is in line with analysts’ EPS estimates.
-CTL gave EPS guidance for the fourth quarter of 55 cents to 60 cents, which is below the 63 cents that analysts are expecting.
-Q4 guidance for revenue is in the range of $4.5 billion to $4.55 billion, which is in line with analysts’ views.
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CEO Commentary
Glen F. Post III, the CEO and president of CenturyLink, had the following to say about the company’s quarterly results:
“Overall, we continue to perform well with particular strength in our Business segment where sustained demand for high-bandwidth services and solid sales momentum continue to drive strong results. Despite this overall solid operating performance in the third quarter, there was a special item which significantly impacted our financial results for the quarter. We were required, under GAAP, to recognize a non-cash $1.1 billion impairment to the goodwill assigned to our Data Hosting segment. While we continue to be optimistic and encouraged about the future growth potential and value of our Data Hosting business, we are not currently achieving the forecasted growth and cash flows we originally projected. As part of our accounting valuation process, past performance was a factor in the development of growth projections for our Data Hosting business in future periods.”
No Mention of Dividend
CTL did not mention its dividend in the quarterly report, and last paid a dividend on September 19. Look for CTL to declare a dividend in mid-November. The company’s last dividend move was to lower its dividend more than 25% to 54 cents.
Stock Performance
CTL stock finished off the day up 51 cents, or 1.53%, but was headed lower in after-hours trading. YTD, the company’s stock is down nearly 17%.
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