CenturyLink Earnings Up, But Headed Down?
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