CenturyLink Earnings Cheat Sheet: Profit Dips and Misses Estimates

Rising operating revenue was not enough for S&P 500 (NYSE:SPY) component CenturyLink, Inc. (NYSE:CTL) as the telecom services company saw profit fall in the second quarter. CenturyLink, Inc. is a communications company that offers communications services, including Internet access, broadband services and voice services.

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CenturyLink Earnings Cheat Sheet for the Second Quarter

Results: Net income for the telecom services company fell to $102 million (17 cents per share) vs. $238.8 million (79 cents per share) a year earlier. This is a decline of 57.3% from the year earlier quarter.

Operating Revenue: Rose more than twofold to $4.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CTL reported adjusted net income of 44 cents per share, falling short of the mean analyst estimate of 66 cents per share. Analysts were expecting revenue of $4.43 billion.

Quoting Management: “We are pleased with the early success of our go-to-market plans in the legacy Qwest markets and the continued demand for broadband in legacy CenturyLink markets, as we achieved higher year-over-year high-speed Internet sales during the second quarter compared to pro forma second quarter 2010,” Post said. “However, net broadband customer additions during the quarter were negatively affected by higher than anticipated churn of stand-alone high-speed Internet customers in the legacy Qwest markets. We have taken affirmative steps to mitigate this churn, which we believe will improve net broadband additions in the months ahead.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the first quarter, net income fell 16.4% while the figure fell 2.2% in the fourth quarter of the last fiscal year and 17.7% in the third quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 76 cents versus a mean estimate of net income of 71 cents per share.

Competitors to Watch: AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Nextel Corporation (NYSE:S), PAETEC Holding Corp. (NASDAQ:PAET), Cbeyond, Inc. (NASDAQ:CBEY), Telephone & Data Systems, Inc. (NYSE:TDS), tw telecom inc. (NASDAQ:TWTC), and IDT Corporation (NYSE:IDT).

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(Source: Xignite Financials)