Coming Soon: CenturyLink Earnings

Seth Jayson, The Motley Fool
Updated

CenturyLink (NYS: CTL) is expected to report Q4 earnings on Feb. 13. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict CenturyLink's revenues will drop -1.4% and EPS will increase 21.8%.

The average estimate for revenue is $4.59 billion. On the bottom line, the average EPS estimate is $0.67.


Revenue details
 Last quarter, CenturyLink notched revenue of $4.57 billion. GAAP reported sales were 0.5% lower than the prior-year quarter's $4.60 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 $0.66. GAAP EPS of $0.43 for Q3 were 95% higher than the prior-year quarter's $0.22 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 57.6%, 30 basis points worse than the prior-year quarter. Operating margin was 16.5%, 230 basis points better than the prior-year quarter. Net margin was 5.9%, 290 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $18.39 billion. The average EPS estimate is $2.67.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 521 members out of 566 rating the stock outperform, and 45 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 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 $44.40.

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The article Coming Soon: CenturyLink Earnings 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 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 position in any of the stocks mentioned. 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.

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