CenturyLink Q2 Results 'Light,' Analyst Says; FairPoint, Consolidated Also Report
CenturyLink Q2 financial results were "solid" and revenue was "in line" with guidance, though consumer subscriber metrics "were softer than anticipated," said CEO Glen Post in an earnings release Wednesday. Operating revenue was $4.4 billion, compared with $4.42 billion in…
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Q2 2015, and net income rose to $196 million from $143 million. Wells Fargo analysts said CenturyLink "reported light" Q2 results "as both financials and customer metrics missed our estimates," losing 66,000 net broadband subscribers. "The company did report better than expected" free cash flow of $617 million (compared to a $512 million estimate), but that "was due to lower capex and cash tax deferral to 2H2016," they said in an investor note. "We have some reservation that CTL can achieve the low end of its 2016 guide given all the moving parts, and reiterate our Market Perform rating." Among other ILECs reporting, FairPoint Communications posted its second consecutive quarterly increase in broadband subscribers and lost residential phone lines "at their lowest rate in many years," said CEO Paul Sunu in a release Wednesday. Consolidated Communications reported Q2 revenue dropped to $186.9 million from $201 million a year ago, though excluding a $10 million decline from certain sales, revenue fell only $4.1 million, said a company release Thursday. The Wells Fargo analysts said "market perform" FairPoint's results were "mixed" and "light" compared with their estimates, and they noted management reiterated expectations "to participate in the consolidating industry." While Consolidated had a "top-line revenue miss" the impact on cash flow "is negligible," said the analysts, who have an "outperform" rating on the company.