CenturyLink -11%; Cowen trims due to 'revenue erosion'

|By:, SA News Editor

CenturyLink (NYSE:CTL) is down 11.2% today in regular-session reaction to yesterday's earnings report.

Cowen has trimmed its 2019 estimates in response after seeing results that indicate "accelerated revenue erosion (both low margin and high margin), as timing the stability becomes incrementally more unclear, adding unwelcomed incremental risk to the story." The firm's not certain that revenue stability will arrive before synergy benefits end, though top-line might not be important for the coming year with synergy/transformation still drivers. (h/t Bloomberg)

It's cutting its 2019 expectations for revenue to $22.78B from $23.3B, and trimming estimates for EBITDA to $9.16B from $9.57B.

Cowen rates the stock Market Perform; it's updated its price target to $21, now implying 12% upside after the morning decline.

Meanwhile, Oppenheimer lowered its price target to $22 from $24. Shares are at $18.73 currently.

Previously: CenturyLink -6.5% as revenue ends up light (Nov. 08 2018)

Related: CenturyLink (CTL) Q3 2018 Results - Earnings Call Transcript (Nov. 08 2018)

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