CenturyLink Beats on EPS but GAAP Results Lag
CenturyLink (NYS: CTL) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), CenturyLink met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
CenturyLink notched revenue of $4.61 billion. The 15 analysts polled by S&P Capital IQ foresaw net sales of $4.61 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $1.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. GAAP EPS of $0.32 for Q1 were 54% lower than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.3%, 650 basis points worse than the prior-year quarter. Operating margin was 14.2%, 1,530 basis points worse than the prior-year quarter. Net margin was 4.3%, 810 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.58 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $18.27 billion. The average EPS estimate is $2.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 531 members out of 573 rating the stock outperform, and 42 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give CenturyLink a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CenturyLink is outperform, with an average price target of $43.39.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.