Market Overview

CenturyLink Earnings Preview: Analysts Expect Rising Revenue

CenturyLink (NYSE: CTL) releases its next round of earnings this Wednesday, August 3, 2011. Here's Benzinga's advanced look at CenturyLink's second quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 66 cents per share and revenues of $4.44 billion. CenturyLink's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a positive EPS of 88 cents per share on revenues of $1.77 billion. We'll have to wait for Wednesday to see if CenturyLink reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $0.71 $0.77 $0.81 $0.85
EPS Actual $0.76 $0.76 $0.83 $0.88

Stock Performance:

As of July 28, 2011, CenturyLink's current share price was $37.24. Since January 1st, shares of CenturyLink have declined 16.6%. For a full 12 months, the return has declined by 0.6%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

  • Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for CenturyLink is a Moderate Buy. This rating has strengthened over the past three months.

Competitors:

Wondering how CenturyLink compares to rivals in the same sector? Here are a few of the company's peers.

  • Cbeyond (NASDAQ: CBEY): Hold with a $0.00 recent quarter EPS
  • PAETEC (NASDAQ: PAET): Hold with a -$0.07 recent quarter EPS
  • Sprint Nextel (NYSE: S): Hold with a -$0.15 recent quarter EPS
  • IDT (NYSE: IDT): $0.31 recent quarter EPS

The wireline-regional company's industry has seen price/earnings contraction of 7.9% during the current fiscal year.

Finally, a description of the company's main areas of operation: CenturyLink is a communications company that offers communications services, including Internet access, broadband services and voice services.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

  • To see up-to-date news on CenturyLink, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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