CenturyLink, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CenturyLink, Inc. (NYSE:CTL) will unveil its latest earnings on Wednesday, August 3, 2011. CenturyLink, Inc. is a communications company that offers communications services, including Internet access, broadband services and voice services. Sprint Nextel Corporation Earnings Cheat Sheet: Loss Widens, Falls Below Estimates>>

CenturyLink, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 66 cents per share, a decline of 25% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 72 cents. Between one and three months ago, the average estimate moved down and dropped from 67 cents during the last month. For the year, analysts are projecting net income of $2.69 per share, a decline of 20.6% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 76 cents per share against a mean estimate of net income of 71 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $4.44 billion in revenue this quarter, a rise of more than twofold from the year ago quarter. Analysts are forecasting total revenue of $17.81 billion for the year, a rise of more than twofold from last year’s revenue of $7.04 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, one rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has now seen net income fall in each of the last three quarters. In first quarter, net income fell 16.4% from the year earlier, 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.

Revenue has fallen for the past three quarters. In first quarter, revenue declined 5.8% to $1.7 billion while the figure fell 5.9% in fourth quarter of the last fiscal year from the year earlier and 6.8% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During June 1, 2011 to July 28, 2011, the stock price had fallen $4.71 (-11.2%) from $41.95 to $37.24. The stock price saw one of its best stretches over the last year between September 7, 2010 and September 22, 2010 when shares rose for 12-straight days, rising 9.5% (+$3.25) over that span. It saw one of its worst periods between July 1, 2011 and July 18, 2011 when shares fell for 11-straight days, falling 7.8% (-$3.20) over that span. Shares are down $7.39 (-16.6%) year to date.

(Source: Xignite Financials)

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