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CenturyLink Inc. (CTL) reported earnings for the second quarter on Wednesday afternoon. Here's what you need to know:
PROFIT: The internet provider reported a profit of $292 million, or 27 cents a share, during the quarter, compared to pro forma earnings of $69 million, or 6 cents a share, for the same period last year. The pro forma earnings assume CenturyLink's acquisition of internet provider Level 3 Communications took place at the start of last year instead of closing in November, allowing for comparability. On an adjusted basis, CenturyLink earned 26 cents a share, better than the 24 cents expected by analysts FactSet surveyed.
REVENUE: The company booked $5.9 billion in sales for the quarter, down 2.3% versus the comparable period. Analysts surveyed by FactSet expected $5.92 billion.
COSTS: CenturyLink's largest expense line in its financial statement, cost of services and products, which includes employee compensation, real estate and other costs, jumped 44% to $2.7 billion.
SUBSCRIBERS: The company reported that about 4.9 million people subscribed to its consumer broadband services, down from more than 5.2 million a year earlier.
MERGER EXPENSES: CenturyLink said by the end of the quarter, it had incurred about $395 million in costs related to integrating Level 3 Communications into its business.
COMMENTARY: "Our continued progress on integration efforts contributed to a solid quarter, with strong growth in Adjusted EBITDA and Free Cash Flow. Across the company, we are focused on profitable growth and providing a better experience for our customers and employees," said Jeff Storey, the company's CEO.
OUTLOOK: CenturyLink raised its adjusted profit guidance on Wednesday. For the full year, the company said it now expected between $9 billion and $9.15 billion in adjusted Ebitda, compared to $8.75 billion and $8.95 billion previously.
SHARES: CenturyLink's stock lost 0.5% to close at $18.54 a share on Wednesday. The shares rose 3.6% in after-market trading.
CenturyLink Inc. (CTL) reported earnings for the second quarter on Wednesday afternoon. Here's what you need to know:
PROFIT: The internet provider reported a profit of $292 million, or 27 cents a share, during the quarter, compared to pro forma earnings of $69 million, or 6 cents a share, for the same period last year. The pro forma earnings assume CenturyLink's acquisition of internet provider Level 3 Communications took place at the start of last year instead of closing in November, allowing for comparability. On an adjusted basis, CenturyLink earned 26 cents a share, better than the 24 cents expected by analysts FactSet surveyed.
REVENUE: The company booked $5.9 billion in sales for the quarter, down 2.3% versus the comparable period. Analysts surveyed by FactSet expected $5.92 billion.
COSTS: CenturyLink's largest expense line in its financial statement, cost of services and products, which includes employee compensation, real estate and other costs, jumped 44% to $2.7 billion.
SUBSCRIBERS: The company reported that about 4.9 million people subscribed to its consumer broadband services, down from more than 5.2 million a year earlier.
MERGER EXPENSES: CenturyLink said by the end of the quarter, it had incurred about $395 million in costs related to integrating Level 3 Communications into its business.
COMMENTARY: "Our continued progress on integration efforts contributed to a solid quarter, with strong growth in Adjusted EBITDA and Free Cash Flow. Across the company, we are focused on profitable growth and providing a better experience for our customers and employees," said Jeff Storey, the company's CEO.
OUTLOOK: CenturyLink raised its adjusted profit guidance on Wednesday. For the full year, the company said it now expected between $9 billion and $9.15 billion in adjusted Ebitda, compared to $8.75 billion and $8.95 billion previously.
SHARES: CenturyLink's stock lost 0.5% to close at $18.54 a share on Wednesday. The shares rose 3.6% in after-market trading.
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