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CenturyLink, Inc. (NYSE:CTL) is scheduled to report its Q2 2012 results on August 8, 2012, after the bell. The Street expects EPS and revenue of $0.62 and $4.57B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CenturyLink, and the news from its closest competitors.

CenturyLink, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter, it reported $0.68 EPS, beating analyst estimates of $0.58.

CenturyLink, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.62 based on 20 analysts' estimates, down from $0.68 a year ago. Revenue estimates are $4.57B, up from $4.41B a year ago. The median target price by analysts for the stock is $45.00.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On July 31, 2012, CenturyLink, Inc.'s Savvis and Ciber announced that they have entered into an agreement under which Savvis will purchase certain assets of Ciber's global IT Outsourcing business for $7 million in cash at the time of closing, plus additional future consideration in the form of a cash earn-out payment based on results through December 2013.
  • On July 26, 2012, CenturyLink, Inc. announced that it will accept $35 million from the Federal Communications Commission's Connect America Fund to deploy broadband service to 45,000 homes in unserved rural areas in multiple states.
  • On July 25, 2012, Nirvanix announced a strategic channel alliance with CenturyLink, Inc. that enables customers to access Nirvanix Cloud Storage Services at higher speeds while significantly reducing bandwidth costs.
  • On July 16, 2012, Digital Realty Trust Inc and CenturyLink, Inc.'s Savvis announced the completion of the joint venture acquisition of a 164,000-square-foot (15,236-square-meter) facility in Hong Kong.
  • On June 21, 2012, CenturyLink, Inc. announced that it has won a contract renewal worth $2.1 million over the next five years to provide telecommunications services to the U.S. Army base at Fort Stewart, Ga. The contract is for one year with four one-year options.
  • On June 15, 2012, CenturyLink, Inc. announced that its wholly-owned subsidiary, Qwest Corporation, agreed to sell $400 million aggregate principal amount of 7.00% Notes due 2052.
  • On June 14, 2012, CenturyLink, Inc. announced that it has won a $233 million task order to provide primary managed data networking services over the next five years to the Social Security Administration under the Networx Universal contract.
  • On June 13, 2012, Savvis, a CenturyLink company announced a strategic agreement with Hortonworks enabling Savvis to leverage Hadoop to offer cloud-based big data solutions for enterprises.
  • On May 9, 2012, CenturyLink, Inc. announced that for the second quarter 2012, it expects operating revenue to be in the range of $4.55 billion to $4.60 billion and adjusted diluted EPS to be $0.59 - $0.64. For fiscal 2012, it expects operating revenue to be in the range of $18.2 billion to $18.4 billion, adjusted diluted earnings per share to be $2.35 - $2.55. According to I/B/E/S Estimates, analysts on an average were expecting the company to report revenues of $4.58 billion and EPS of $0.59 for the second quarter of 2012; revenues of $18.3 billion and EPS of $2.38 for fiscal 2012.
  • On May 7, 2012, CenturyLink, Inc.'s Savvis announced that FXall has renewed its hosting and infrastructure services agreement with Savvis and will take additional data center space to accommodate client demand and ongoing market growth.
  • On April 11, 2012, Savvis, a CenturyLink company announced that Cognizant, has selected Savvis cloud and data center services to further expand capabilities to deliver cloud-based solutions.
  • On April 4, 2012, Digital Realty Trust, Inc., a global data centre solution provider, and Savvis, a CenturyLink, Inc. company and a cloud infrastructure and hosted IT solutions for enterprises, announced that they are under contract to acquire a 165,000-square-foot (15,247-square-meter) property in a joint venture.

Competitors

Alcatel-Lucent (NYSE:ALU), Frontier Communications (NASDAQ:FTR), AT&T (NYSE:T), Verizon (NYSE:VZ), and Windstream (NASDAQ:WIN) are considered major competitors for CenturyLink, and the table below provides the key metrics for these companies and the industry.

CenturyLink, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

CTL Chart

CTL data by YCharts

Competitors' Latest Development

  • On August 3, 2012, Reuters reported that Moody's Investors Service has affirmed Alcatel Lucent SA's B2 corporate family rating and B2 probability of default rating.
  • On August 2, 2012, AT&T Inc announced that it has agreed to acquire NextWave Wireless, Inc. NextWave holds licenses in the Wireless Communication Services and Advanced Wireless Service bands.
  • On August 1, 2012, Windstream Corp. announced that it has been awarded a contract by the Defense Information System Agency to provide Fort Lee with diverse fiber and Dense Wavelength Division Multiplexing (DWDM) services.
  • On July 27, 2012, AT&T Inc announced the repurchase of up to 300 million additional shares, representing approximately 5% of AT&T shares outstanding, with no expiration date.
  • On July 26, 2012, Reuters reported that Alcatel Lucent SA would cut 5,000 jobs and seek to exit or restructure unprofitable markets as part of a programme to cut costs by Euro1.25 billion ($1.52 billion) by the end of next year.
  • On July 26, 2012, Windstream Corp. announced that it has been selected by NeoVox Global to implement a contact center at NeoVox's new headquarters in Carthage, Mo. The 180-seat center, featuring Avaya Aura call center technology, is designed to handle thousands of inbound multimedia communications every day for Fortune 100 companies, including traditional voice, but also web-based chat, email, IM, even SMS text messages.
  • On July 26, 2012, Verizon Communications Inc. announced that it closed its previously announced acquisition of HUGHES Telematics, Inc., setting Verizon on a course to accelerate growth through the delivery of advanced automotive and fleet telematics and machine-to-machine services.
  • On July 25, 2012, Frontier Communications Corp announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on September 28, 2012 to holders of record of common stock at the close of business on September 7, 2012.
  • On July 24, 2012, Frontier Communications Corp announced that it has signed a wholesale agreement with Hughes Network Systems, LLC. Frontier will distribute satellite-based broadband services, branded Frontier Broadband, that will deliver increased speed and capacity to households and small businesses within markets previously unserved or underserved by all broadband providers, including cable.
  • On July 17, 2012, Alcatel Lucent SA announced that based on analysis of second quarter preliminary financial results, Alcatel Lucent SA expects Q2 2012 adjusted operating income to be a loss of around Euro 40 million with revenues above EUR 3.5 billion.
  • On July 13, 2012, AT&T Inc announced that it has reached an agreement with the International Brotherhood of Electrical Workers on a one-year contract extension covering nearly 7,000 core wireline employees.
  • On July 5, 2012, Verizon Communications Inc. announced that Hydro and Verizon have entered into an agreement under which Verizon will deliver a managed global wide area network with integrated security and remote access solutions, an integrated partner firewall to enable third-party access to select business solutions and full professional service support.
  • On July 3, 2012, Dow Jones reported that State-run Indian telecom operator Bharat Sanchar Nigam Ltd. (BSNL) has given network-equipment contracts to China's ZTE Corp and Alcatel Lucent SA. While ZTE was the lowest bidder, Alcatel-Lucent was among four vendors shortlisted by BSNL.
  • On June 26, 2012, Alcatel-Lucent SA announced that it has been selected by Telkom SA, an integrated communications company which is to expand the availability of superfast broadband services to subscribers in South Africa.
  • On June 20, 2012, Alcatel Lucent SA announced that it has received an award for the Chief Information Officer-Solutions and Partners 3 (CIO-SP3) contract to provide a wide range of IT services and solutions to Federal Government agencies.
  • On June 19, 2012, Dow Jones reported that four telecommunication gear makers short-listed by Bharat Sanchar Nigam Ltd. (BSNL) for an equipment supply contract worth more than $1 billion have pulled out saying the final bid price is very low and isn't viable for them.
  • On June 18, 2012, Frontier Communications Corp announced that it has completed its previously announced debt tender offer and has applied the full Maximum Payment Amount of $500 million toward the repurchase of its 8.250% Senior Notes due 2014 (the 2014 Notes) and 7.875% Senior Notes due 2015 (the 2015 Notes).
  • On June 14, 2012, Frontier Communications Corp and The Berry Company, LLC, a local search services company, announced their continued partnership to produce FrontierPages through 2014.
  • On June 13, 2012, Telenor ASA announced that it has signed cooperation agreement with Alcatel-Lucent SA, through which the Company has gained the ability to launch its own store for digital content, giving its customers access to a wide variety of personalized digital media services such as music, applications, games, e-books and video.
  • On June 7, 2012, Telecom Tiger reported that Alcatel Lucent SA announced that it has provided 4G LTE technology to African telecommunications operator Smile Telecom Holdings Ltd (Smile) which has launched a new service in Dar es Salaam, Tanzania, enabling the delivery of mobile broadband services including live video chat and TV streaming.
  • On June 7, 2012, Verizon Communications Inc. announced that its Board of Directors declared a quarterly dividend of $0.50 per outstanding share, unchanged from the previous quarter.
  • On June 4, 2012, Reuters reported that Verizon Communications Inc., is looking to cut its workforce by 1,700 people, or almost 1%, through a buyout offer for technicians and call-center employees.
  • On June 1, 2012, Verizon Communications Inc. announced a definitive merger agreement under which Verizon will acquire Hughes Telematics, Inc. for $12.00 per share in cash, or a total of $612 million.
  • On May 31, 2012, Dow Jones reported that Bharti Airtel has announced that Alcatel Lucent SA will build an Internet protocol-based network for the Indian telecommunications company to speed up its mobile broadband services.
  • On May 31, 2012, Windstream Corp. announced that it is restructuring its management ranks to increase the efficiency of decision-making and position the Company for continued success.
  • On May 17, 2012, Frontier Communications Corp announced that it has commenced a registered offering of $500 million aggregate principal amount of senior notes due 2021.
  • On May 17, 2012, Frontier Communications Corp announced that it has priced its registered offering of $500 million aggregate principal amount of 9.250% senior notes due 2021 (Notes).
  • On May 15, 2012, AT&T Inc.'s AT&T Government Solutions announced that it has been selected as a prime vendor under the Tactical Communications Equipment and Services (TacCom) contract.
  • On May 11, 2012, Reuters reported that AT&T Inc has held talks to buy Leap Wireless International, Inc. in recent months. These talks were serious enough for Leap Wireless to hire bankers to advise it on a potential deal.
  • On May 8, 2012, Frontier Communications Corp announced that its Board of Directors has declared a regular quarterly cash dividend payment of $0.10 per share of common stock, payable on June 29, 2012 to holders of record of common stock at the close of business on June 8, 2012.

Technical Overview


The stock has a market capitalization of $25.93B and is currently trading at $41.74 with a 52 week range of $31.16 - $42.70. The stock's year-to-date performance has been 16.43%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: CenturyLink Q2 Earnings Preview