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How CenturyLink Stock Wrapped Up 2019

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CenturyLink (CTL) stock closed the trading day on January 2 at $12.92, a fall of 2.2%. The stock is trading 22.9% lower than its 52-week high of $16.75. Also, the stock was 34.0% higher than its 52-week low of $9.64. Its market cap is $14.1 billion as of January 2. In 2019, the stock fell by about 12.8%. Also, CTL stock fell about 2.41% on Friday’s trading session at 2:15 PM ET.

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CenturyLink stock is down

On December 30, CenturyLink announced that chairman Harvey Perry would retire effective May this year because of the company’s new guidelines. The company announced T. Michael Glenn as the new chairman of the company’s board of directors. Also, CenturyLink announced that board member Glen Post is not seeking re-election.

According to a FierceTelecom report on January 2, “CenturyLink’s board also approved several changes to its cooperate governance guidelines including limiting the average board tenure to no more than 10 years and the goal of having all non-CEO board members be independent. CenturyLink is planning on keeping the board of directors to between 10 and 12 directors along with rotating board committee and board chairs approximately every five years.”

According to a LightReading report on January 2, CenturyLink agreed to a $4 million settlement with the Oregon attorney general for overcharging.

CenturyLink’s financial performance

CenturyLink reported adjusted EPS of $0.99 in the first nine months of 2019 compared to $0.81 during the same period in 2018, reflecting 22.2% YoY (year-over-year) growth. In Q3 2019, the telecom company reported an adjusted EPS of $0.31 compared to $0.30 in Q3 2018, reflecting 3.3% YoY growth.

CenturyLink reported revenue of $16.8 billion in the first nine months of 2019 compared to $17.7 billion during the same period in 2018, reflecting a 4.7% YoY reduction. Also, in Q3 2019, CenturyLink reported revenue of $5.6 billion. This is a YoY fall of 3.6% and a sequential rise of 0.5%. Its revenue came in more than the consensus estimate of $5.54 billion.

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Growth projection

In Q4 2019, analysts expect CenturyLink to post total revenue of $5.5 billion, down 4.0% from $5.8 billion in Q4 2018. Analysts also expect the company’s sales to fall 4.5% YoY to $22.4 billion in 2019 and 2.9% YoY to $21.7 billion in 2020. Its sales are likely to further fall by 2.7% YoY to $21.1 billion in 2021.

In Q4 2019, analysts expect CenturyLink’s non-core EPS to fall 10.8% YoY to $0.33. Also, analysts expect CenturyLink’s non-core EPS to rise 10.9% YoY to $1.32 in 2019 and 8.3% YoY to $1.43 in 2020. Its earnings are likely to rise by 1.4% YoY to $1.45 in 2021.

Analysts’ recommendations for CenturyLink

Among the 15 analysts covering CenturyLink stock, two have “buy” ratings. This is down from three in December. About ten analysts have “neutral” ratings on the stock. This is up from eight in the previous month.

Meanwhile, three analysts have “sell” ratings on the stock, up from two in the last month. As of January 3, analysts gave CenturyLink a 12-month average target price of $12.91. Based on the closing price on January 2, the target price represents the potential downside of about 0.1%.

Technical analysis

CenturyLink stock closed at $12.92 on January 2. Respectively, the stock was 4.1%, 6.9%, and 0.1% below its 20-, 50-, and 100-day moving averages of $13.47, $13.88, and $12.93. CenturyLink’s 14-day RSI (relative strength index) score is 35. This signified that the stock is approaching the “oversold” zone.

Additionally, on January 2, CTL stock closed near its lower Bollinger Band level of $12.66. This value denotes that the stock is oversold.

To learn more, read A Look at CenturyLink’s Dividend Yield and Outlook.

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