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