CenturyLink (CTL) Misses Q2 EPS by 5c; Lowers Outlook

CenturyLink (NYSE: CTL) reported Q2 EPS of $0.55, $0.05 worse than the analyst estimate of $0.60. Revenue for the quarter came in at $4.42 billion versus the consensus estimate of $4.43 billion.

CenturyLink sees Q3 2015 EPS of $0.53-$0.58, versus the consensus of $0.62. CenturyLink sees Q3 2015 revenue of $4.42-4.47 million, versus the consensus of $4.47 million.

CenturyLink sees FY2015 EPS of $2.35-$2.55, versus prior guidance of $2.50-$2.70 and the consensus of $2.53. CenturyLink sees FY2015 revenue of $17.7-17.9 billion, versus prior guidance of $17.9-18.1 billion and the consensus of $17.84 billion.

"CenturyLink's results for the second quarter were below our forecast and Street consensus, primarily due to continued pressure on wholesale revenues and higher employee and benefit costs," said Glen F. Post III, chief executive officer and president. "While we are disappointed with the financial results for this quarter, we are positioning CenturyLink to drive stronger sales, strategic revenue growth and improved operating cash flow in the months ahead.

"The sales force realignment that we completed earlier this year is gaining traction and beginning to positively impact our results. For example, the improvement in sales to business customers that began in March continued throughout the quarter, resulting in 15% sequential growth in Business sales compared to first quarter sales. In addition, we exited the second quarter with a strong funnel of sales opportunities, which has continued to grow.

"While our path to revenue and cash flow growth is taking longer than we initially anticipated, we remain confident that we have the right assets and strategies to drive long-term revenue growth. We also have taken action to lower our planned capital investment and operating costs for the second half of 2015 to align with our current level of revenue generation," Post concluded.

For earnings history and earnings-related data on CenturyLink (CTL) click here.

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