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CenturyLink, Inc. (CTL)

  • Wed, Sep. 23, 11:05 AM
    • Macquarie's Kevin Smithen says the firm's bearish thesis on data center stocks might have been flawed, and maintained an Overweight rating on DuPont Fabros (DFT -0.4%) and CenturyLink (CTL +0.3%) amid overall sentiment improvement in the area.
    • He has a price target on DuPont Fabros (his top sector pick) of $40; shares are trading at $26.08, implying 50%-plus upside. The target on CenturyLink is $37, about 45% upside from a current $25.45.
    • “Over the last year, while investors were focused on the thematic growth prospects of wireless telco, fiber and CDNs, and trying to rationalize declining lower multiples (since the 1H14 rally), data centers have gained noticeable mind-share,” he says.
    • Pricing, dividend yields and (relative) growth opportunities are "key areas of improvement" among data centers, he notes. Average yield in the companies' segment is 4.4%, while DuPont Fabros sports a 6.4% yield and Digital Realty Trust (NYSE:DLR) a 5.3% yield.
    | Wed, Sep. 23, 11:05 AM | 2 Comments
  • Mon, Sep. 21, 3:42 PM
    • A CenturyLink (CTL +0.8%) filing says its Qwest subsidiary has wrapped a sale of $400M in debt.
    • The sale closed for 6.625% notes due 2055. Proceeds of about $386M will be used to redeem all $250M in outstanding 7.2% debentures due 2026, and some of the $1B in 6.875% debentures due 2033.
    • Underwriters who bought the notes have an option until Oct. 10 to buy an additional $60M worth for over-allotments.
    | Mon, Sep. 21, 3:42 PM | Comment!
  • Thu, Sep. 10, 7:54 PM
    • Qwest, the unit of CenturyLink (CTL -0.7%), will sell $400M in debt securities that it hope to list on the NYSE.
    • The company agreed to sell that sum in 6.625% notes due 2055, along with an overallotment option of another $60M in principal. The offering's expected to close Sept. 21.
    • Qwest plans to use proceeds to redeem $250M in 7.2% debentures due 2026 and a portion of $1B in 6.875% debentures due 2033.
    | Thu, Sep. 10, 7:54 PM | 4 Comments
  • Mon, Aug. 31, 10:16 AM
    • CenturyLink (CTL -0.5%) has a contract to provide communications service for the Texas Health and Human Services Commission.
    • The company will pick up HHSC's existing IP-based phone systems as well as legacy analog systems using a hybrid approach. Older systems will be migrated to a VoIP/unified communications platform.
    • The agency has more than 400 statewide locations.
    | Mon, Aug. 31, 10:16 AM | Comment!
  • Thu, Aug. 27, 9:59 AM
    • CenturyLink (CTL +0.7%) says it's accepting $3B in funds -- $500M a year for six years -- to accelerate the spread of rural broadband in 33 states.
    • The company is taking funds from the FCC's Connect America Fund Phase II, in order to bring service with 10 Mbps downstream/1 Mbps upstream to about 1.2M rural households and businesses. It had previously taking $75M in phase I interim funding to bring 4 Mbps broadband to 114,000 unserved locations.
    • CenturyLink will finalize a buildout and begin construction in early 2016. The company declined accepting the statewide offers for California, Mississippi, Oklahoma and Wyoming.
    • Meanwhile, the company has begun cutting jobs in Colorado, 150 of the 1,000 job cuts it was planning.
    | Thu, Aug. 27, 9:59 AM | 13 Comments
  • Tue, Aug. 25, 6:22 PM
    • Montana backed off a lawsuit and settled with CenturyLink (NYSE:CTL), in a deal that calls for the telecom to improve response times and accept federal funds to expand broadband there.
    • The deal demands that CenturyLink accept $90M in Connect America funds, which come with strict deadlines and geographic requirements to help spread rural broadband.
    • "CenturyLink has to certify to the FCC and the (Montana) service commission that they've built out 33,000-something unserved or underserved census blocks," said Public Service Commissioner Travis Kavulla.
    • A group of residents who said that CenturyLink outages undermined public safety signed on to the deal as well.
    • CTL fell 2.7% today and shares are down 36.4% for the year.
    | Tue, Aug. 25, 6:22 PM | Comment!
  • Tue, Aug. 25, 4:18 PM
    • CenturyLink (NYSE:CTL) declares $0.54/share quarterly dividend, in line with previous.
    • Forward yield 8.58%
    • Payable Sept. 22; for shareholders of record Sept. 8; ex-div Sept. 3.
    | Tue, Aug. 25, 4:18 PM | 5 Comments
  • Thu, Aug. 20, 6:46 PM
    • Small and mid-sized providers including CenturyLink (NYSE:CTL), Consolidated Communications (NASDAQ:CNSL), FairPoint (NASDAQ:FRP), Mediacom and Telephone and Data Systems (NYSE:TDS) are pressing the FCC to rework its rules on retransmission consent, to address a "lack of transparency" in negotiations.
    • Retrans negotiations are tough headwinds for IPTV providers who are looking to enter new markets where cable providers have a dominant position.
    • They note FCC Chairman Tom Wheeler has estimated that retrans consent fees rose by nearly 8,600% between 2005 and 2012, and are calling for broadcasters to show more info to back up bargaining claims -- such as documenting "market prices" -- to satisfy the "good faith" requirement in negotiations.
    • The companies are pushing expansion into new areas even as established cablecos like Comcast and Time Warner Cable hold near-monopoly positions there.
    | Thu, Aug. 20, 6:46 PM | Comment!
  • Wed, Aug. 12, 7:56 PM
    • CenturyLink (CTL +1%) is optimistic about its second-half profitability despite wholesale headwinds, high employee costs, and consumer voice lines that continue to shrink, CFO Stewart Ewing says.
    • We expect [wholesale business] to get better in the second half of the year," Ewing said at an Oppenheimer investor conference. "We renegotiated a contract with one of our wireless providers with fiber to the tower. ... [that] really stabilizes that revenue stream going forward and allows us to pick up more of their towers.
    • CenturyLink said over the weekend that it would cut 1,000 jobs in an effort to control labor costs. The stock is up 3.2% since then.
    • Ewing says the company is making changes to its sales force, particularly rebuilding a "pursuit team" in order to chase bigger business sales.
    • The company may be thinking about tiered pricing "in the long term" as it sees more and more demand for video via broadband. The average broadband subscriber uses about 79 GB/month and heaviest users are cresting 200 GB/month.
    • Previously: CenturyLink to cut 1,000 jobs across company (Aug. 08 2015)
    • Previously: CenturyLink drops 7.2% after disappointing Q2, lowered outlook (Aug. 05 2015)
    | Wed, Aug. 12, 7:56 PM | Comment!
  • Mon, Aug. 10, 1:28 PM
    • CenturyLink (NYSE:CTL) has climbed 3.8%, regaining the ground it lost after a disappointing Q2 report, following the weekend's news that it's cutting 1,000 jobs.
    • After a report where it cited higher employee and benefit costs as a key factor in missing Street consensus, the company said it would make cuts companywide of about 2.3%, but stuck to its plan to expand its hiring at headquarters in Louisiana.
    • It employs 2,500 workers at HQ and 2,700 in Louisiana, out of 44,000 total.
    • Previously: CenturyLink drops 7.2% after disappointing Q2, lowered outlook (Aug. 05 2015)
    | Mon, Aug. 10, 1:28 PM | Comment!
  • Sat, Aug. 8, 4:16 PM
    | Sat, Aug. 8, 4:16 PM | 27 Comments
  • Wed, Aug. 5, 5:38 PM
    • Top gainers, as of 5.25 p.m.: HDP +14.5%. WTW +13.0%. TAL +11.7%. RAIL +11.0%.
    • Top losers, as of 5.25p.m.: GMCR -27.0%. SQNM -19.0%. FIT -13.0%. CTL -7.0%. MELI -5.5%.
    | Wed, Aug. 5, 5:38 PM | Comment!
  • Wed, Aug. 5, 4:40 PM
    • CenturyLink (NYSE:CTL) is off 7.2% now in after-hours action after Q2 earnings missed expectations and it lowered guidance for the full year.
    • "CenturyLink's results for the second quarter were below our forecast and Street consensus, primarily due to continued pressure on wholesale revenues and higher employee and benefit costs," said CEO Glen Post III.
    • Revenue breakout (as adjusted): Strategic, $2.33B (up 1.9%); Legacy, $1.69B (down 6.9%); Data integration, $142M (down 24.1%); Other, $258M (up 2%).
    • High-speed Internet customers declined about 9,200 to end at over 6.1M. Added about 8,400 Prism TV customers to end with about 258,000.
    • The company says it expects to accept at least $300M in support from the FCC's Connect America Fund Phase 2, and is evaluating an additional $200M.
    • CenturyLink expects Q3 revenues (excluding impact of CAF Phase 2) of $4.42B-$4.47B (vs. expectations of $4.48B), and for EPS of $0.53-$0.58, light of an expected $0.62. CAF Phase 2 is expected to have an additional $20M-$150M effecton revenues and $0.03-$0.16 on EPS, depending on funds accepted.
    • For the full year, it's lowered guidance to revenues of $17.7B-$17.9B, and EPS of $2.35-$2.55, vs. $2.52 expected.
    • Conference call to come at 5 p.m.
    • Press Release
    | Wed, Aug. 5, 4:40 PM | 3 Comments
  • Wed, Aug. 5, 4:09 PM
    • CenturyLink (NYSE:CTL): Q2 EPS of $0.55 misses by $0.05.
    • Revenue of $4.42B (-2.6% Y/Y) misses by $10M.
    • Press Release
    | Wed, Aug. 5, 4:09 PM | Comment!
  • Tue, Aug. 4, 5:35 PM
  • Mon, Aug. 3, 6:25 PM
    • ProShares is shuttering its UltraShort Telecommunications ETF (TLL -5.7%), the fund that bets against big telecoms like AT&T (NYSE:T) and Verizon (NYSE:VZ), due to lack of interest.
    • The fund -- a double-short fund working on the inverse of the Dow Jones U.S. Select Telecommunications Index -- will close after the market on Sept. 14. Trading had slowed to about 100 shares on average.
    • Top components of Dow Jones' telecom index that the fund bet against are AT&T, Verizon, SBA Communications (NASDAQ:SBAC), Level 3 Communications (NYSE:LVLT), CenturyLink (NYSE:CTL), T-Mobile (NYSE:TMUS), Frontier (NASDAQ:FTR) and Sprint (NYSE:S).
    • TLL was down 7.6% over the past six months. The iShares U.S. Telecommunications ETF (NYSEARCA:IYZ) -- tracking the same index from the other direction -- is down 0.5% YTD.
    | Mon, Aug. 3, 6:25 PM | 11 Comments
CTL vs. ETF Alternatives
Company Description
CenturyLink Inc, together with its subsidiaries, is an integrated communications company engaged primarily in providing a broad array of communications services including local and long distance voice, data, Internet access & broadband services etc.