CenturyLink Inc. Earnings: Misses Expectations

Rising 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 fourth quarter. CenturyLink 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 Fourth Quarter

Results: Net income for CenturyLink Inc. fell to $109 million (18 cents per share) vs. $225.2 million (74 cents per share) a year earlier. This is a decline of 51.6% from the year earlier quarter.

Revenue: Rose more than twofold to $4.65 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CenturyLink Inc. reported adjusted net income of 24 cents per share. By that measure, the company fell short of mean estimate of 61 cents per share. Analysts were expecting revenue of $4.62 billion.

Quoting Management: “CenturyLink delivered solid financial results in the fourth quarter and exited 2011 with a strategic, diversified portfolio of assets,” Glen F. Post, III, chief executive officer and president, said. “The Company generated strong revenues for the quarter, driven by continued growth in strategic revenues and a slower decline in legacy revenues.”

Key Stats:

Revenue has now gone up for three straight quarters. In the third quarter, revenue rose more than twofold to $4.6 billion while the figure rose more than twofold in the second quarter from the year earlier.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 34 cents.

Net income has dropped 33.4% year over year on average across the last five quarters. Performance was hurt by a 57.3% decline in the second quarter from the year earlier quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 63 cents a share. The average estimate for the fiscal year has remained at $2.68 per share.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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