Nomura Securities Maintains a 'Buy' on CenturyLink (CTL); Cutting 2012 Estimates Post Q4
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Price: $11.00 --0%
Rating Summary:
5 Buy, 14 Hold, 10 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 14 Hold, 10 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on CenturyLink, Inc. (NYSE: CTL) price target of $45.00.
Analyst, Mike McCormack, said, "CenturyLink guided to relatively disappointing EBITDA performance, but the FCF guide is likely to soothe nerves. We remain hopeful that EBITDA declines stabilize before FCF deterioration materializes. CenturyLink reported fourth-quarter revenue and EBITDA of $4.65bn and $1.85bn, which compared to our estimates of $4.62bn and $1.90bn, and consensus of $4.62bn and $1.91bn, respectively. 4Q11 broadband additions of 70k and access line losses of 6.6% exceeded our expectations of 45k and 6.9% Y/Y, respectively. Prism TV subs grew 30% Y/Y and 14% Q/Q. We expect CenturyLink to remain focused on Prism as a churn reduction tool, with incremental market launches in 2012, including entry into Qwest markets. Guidance proved to be light on EBITDA and EPS vs. consensus. Free cash flow guidance of $3.2bn to $3.4bn will likely be the key metric, and was largely in line with Street expectations. Our EPS estimate for 2012 decreases to $2.36 from $2.74."
For an analyst ratings summary and ratings history on CenturyLink, Inc. click here. For more ratings news on CenturyLink, Inc. click here.
Shares of CenturyLink, Inc. closed at $37.83 yesterday.
Analyst, Mike McCormack, said, "CenturyLink guided to relatively disappointing EBITDA performance, but the FCF guide is likely to soothe nerves. We remain hopeful that EBITDA declines stabilize before FCF deterioration materializes. CenturyLink reported fourth-quarter revenue and EBITDA of $4.65bn and $1.85bn, which compared to our estimates of $4.62bn and $1.90bn, and consensus of $4.62bn and $1.91bn, respectively. 4Q11 broadband additions of 70k and access line losses of 6.6% exceeded our expectations of 45k and 6.9% Y/Y, respectively. Prism TV subs grew 30% Y/Y and 14% Q/Q. We expect CenturyLink to remain focused on Prism as a churn reduction tool, with incremental market launches in 2012, including entry into Qwest markets. Guidance proved to be light on EBITDA and EPS vs. consensus. Free cash flow guidance of $3.2bn to $3.4bn will likely be the key metric, and was largely in line with Street expectations. Our EPS estimate for 2012 decreases to $2.36 from $2.74."
For an analyst ratings summary and ratings history on CenturyLink, Inc. click here. For more ratings news on CenturyLink, Inc. click here.
Shares of CenturyLink, Inc. closed at $37.83 yesterday.
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