CenturyLink's EPS guidance soft, shares -1.3% AH

CenturyLink (CTL) expects Q1 revenue of $4.46B-$4.51B and EPS of $0.58-$0.63. While the former is mostly above a $4.46B consensus, the latter is below a $0.68 consensus.

Likewise, the telco expects 2014 revenue of $17.9B-$18.1B and EPS of $2.40-$2.60. The former mostly beats a $17.92B consensus, and the latter is below a $2.66 consensus.

Q4 free cash flow was $601M, -1% Y/Y but well above net income of $396M. However, CenturyLink expects 2014 free cash flow of $2.6B-$2.8B, down from a 2013 level of $3.07B.

"Legacy" revenue streams declined 6.7% Y/Y to $1.85B, as wireline voice disconnections continue taking a toll. "Strategic" revenue (inc. broadband/TV) rose 5.4% to $2.26B.

Op. income margin fell 40 bps Y/Y to 14.1%, and op. cash flow margin 160 bps to 39.6%.

$331M was spent on buybacks in Q4. CenturyLink's dividend yield currently stands at 7.2%.

Q4 results, PR

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Comments (1)
  • DoowopDave
    , contributor
    Comments (253) | Send Message
    Everyone interested knows that revenues and therefor margins on land lines are going away. Management needs to concentrate on growing the rest of their business fast and do a better job controlling costs. As part of cost control, they are paying too high a price for stock buy backs.
    12 Feb 2014, 07:46 PM Reply Like
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