x
Cable/Video

CenturyLink Earnings Up, But Headed Down?

CenturyLink Inc. (NYSE: CTL) beat expectations with first-quarter earnings, announcing Thursday morning that net income was 76 cents per share, beating the company's own prediction of 66 to 70 cents per share.

But the company's 2011 forecast for the combined CenturyLink/Qwest operation disappointed the analyst community. CenturyLink expects earnings-per-share of 67 cents per share at most in the second quarter, and $2.55 to $2.65 for the year versus the analyst consensus of $2.94 according to Thomson Reuters . (See CenturyLink Q1 Solid.)

CenturyLink reported revenues of $1.7 billion, at the high end of its guidance and in line with analyst estimates. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) was $868 million, and its EBITDA margin was 51.2 percent, both exceeding analyst estimates. CenturyLink's capital expenditures for the quarter were $211 million, and it reduced operating expenses from $1.22 billion in the previous quarter to $1.2 billion.

The number of total access lines continued to decline, down 7.5 percent compared with a year ago. That's a slower pace compared to the 8.4 percent drop in the first quarter of 2010. CenturyLink added 52,000 net broadband subscribers in the quarter, more than expected.

— Carol Wilson, Chief Editor, Events, Light Reading

Be the first to post a comment regarding this story.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE