Are You Expecting This From CenturyLink?

Updated

CenturyLink (NYS: CTL) is expected to report Q2 earnings on Aug. 8. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict CenturyLink's revenues will improve 3.8% and EPS will improve 38.6%.

The average estimate for revenue is $4.57 billion. On the bottom line, the average EPS estimate is $0.61.


Revenue details
Last quarter, CenturyLink notched revenue of $4.61 billion. 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 details
Last quarter, non-GAAP EPS came in at $0.68. 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.

Recent performance
For the preceding quarter, gross margin was 59.4%, 450 basis points worse than the prior-year quarter. Operating margin was 15.2%, 1,420 basis points worse than the prior-year quarter. Net margin was 4.3%, 810 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $18.31 billion. The average EPS estimate is $2.49.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 524 members out of 567 rating the stock outperform, and 43 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 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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The article Are You Expecting This From CenturyLink? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

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