CenturyLink Earnings: Here’s Why Investors Don’t Like These Results

CenturyLink, Inc. (NYSE:CTL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.16%.

CenturyLink, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 66.15% to $1.08 in the quarter versus EPS of $0.65 in the year-earlier quarter.

Revenue: Decreased 1.87% to $4.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CenturyLink, Inc. reported adjusted EPS income of $1.08 per share. By that measure, the company beat the mean analyst estimate of $0.67. It beat the average revenue estimate of $4.52 billion.

Quoting Management: “We generated strong financial results for the first half of 2013 as our operating revenues were in line with and operating cash flow exceeded our expectations. We have experienced higher than expected sales trends of recurring revenue services and continue to see a strong pipeline of sales opportunities. Our cross-selling initiatives in our managed hosting segment are gaining traction and driving results,” said Glen F. Post III, chief executive officer and president.

Key Stats (on next page)…

Revenue increased 0.28% from $4.51 billion in the previous quarter. EPS increased 42.11% from $0.76 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.66 to a profit $0.65. For the current year, the average estimate has moved up from a profit of $2.72 to a profit of $2.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)