Wednesday, 17 May 2017 08:15 AM
Upcoming AWS Coverage on Shenandoah Telecommunications Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 17, 2017 / Active Wall St. announces its post-earnings coverage on CenturyLink, Inc. (NYSE: CTL). The Company released its first quarter fiscal 2017 financial results on May 03, 2017. The communications Company revenue and earnings declined on a y-o-y basis. Register with us now for your free membership at:
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One of CenturyLink's competitors within the Telecom Services - Domestic space, Shenandoah Telecommunications Co. (NASDAQ: SHEN), reported on May 04, 2017, its financial and operating results for the three months ended March 31, 2017. AWS will be initiating a research report on Shenandoah Telecommunications in the coming days.
Today, AWS is promoting its earnings coverage on CTL; touching on SHEN. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
CenturyLink's operating revenues for the first quarter ended March 31, 2017, were $4.21 billion compared to $4.40 billion in Q1 2016 due to the decline in legacy revenues. The Company's revenue numbers missed analysts' consensus of $4.27 billion.
For Q1 2017, CenturyLink's operating expenses decreased to $3.58 billion from $3.71 billion in Q1 first quarter 2016, primarily driven by the termination of depreciation expense related to the data centers and colocation business divested on May 01, 2017, along with lower salaries and wages expense related to the headcount reduction in Q4 2016. Excluding special items, the Company's operating expenses totaled $3.61 billion compared to $3.69 billion in the year ago period.
During Q1 2017, CenturyLink's operating income decreased to $631 million from $688 million in Q1 2016 primarily due to decline in operating revenues, partially offset by lower operating expenses.
CenturyLink's net income and diluted earnings per share (EPS) were $163 million and $0.30, respectively, for Q1 2017, compared to $236 million and $0.44, respectively, for Q1 2016. The Company's adjusted net income and adjusted diluted EPS, excluding after-tax impact of special items, non-cash after-tax impact of the amortization of certain intangible assets related to major acquisitions since mid-2009, and non-cash after-tax impact to interest expense relating to the assignment of fair value to the outstanding debt assumed in connection with those acquisitions, was $284 million, or $0.52 for the reported quarter, compared to adjusted net income of $386 million, or $0.71, in the year ago same quarter. CenturyLink's earnings lagged behind Wall Street's estimates of $0.53 per share.
Segment Financial Results
For Q1 217, CenturyLink's Enterprise segment's revenues were $2.36 billion, down 3.5% on a y-o-y basis, primarily due to a decline in legacy revenues, which was partially offset by 4.2% growth in high-bandwidth data services revenues. Total strategic revenues for the segment were $1.08 billion in the reported quarter, an increase of 2.9% compared to the year ago same period.
CenturyLink's Consumer segment generated revenues of $1.41 billion in Q1 2017, down 5.2% compared to Q1 2016, primarily due to a decline in legacy voice revenues, as well as lower satellite video revenues. Total strategic revenues were $764 million in the reported quarter, a decrease of 1.3% on a y-o-y basis, due primarily to the restructuring of a satellite video services contract.
Cash Flow
CenturyLink's operating cash flow, excluding special items, decreased to $1.53 billion from $1.68 billion in Q1 2016 due to the decline in operating revenues. The Company reported free cash flow of $492 million in the reported quarter, excluding special items.
CenturyLink ended the quarter with more than 3.5 million addressable units capable of broadband speeds of 100Mbps or higher and more than 1.4 million addressable units capable of 1Gig or higher
Guidance
CenturyLink expects growth in strategic revenues in Q2 2017 to be offset by anticipated declines in legacy revenues, resulting in lower operating revenues and core revenues compared to Q1 2017. The Company expects operating revenues to be in the range of $4.07 billion to $4.13 billion, core revenues in the band of $3.66 billion to $3.72 billion, and operating cash flow ranging between $1.4 billion and $1.46 billion for the upcoming quarter.
Stock Performance
At the close of trading session on Tuesday, May 16, 2017, CenturyLink's stock price slightly fell 0.16% to end the day at $24.77. A total volume of 8.66 million shares were exchanged during the session. The Company's share price has gained 8.77% in the past six months and 6.53% on YTD basis. The Company's shares are trading at a PE ratio of 24.24 and have a dividend yield of 8.72%. The stock currently has a market cap of $13.49 billion.
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SOURCE: Active Wall Street