CenturyLink Inc

As of April 11, 2016, ~52.6% of Wall Street analysts’ recommendations for CenturyLink’s stock were “holds,” 15.8% were “sells,” and ~31.6% were “buys.”

In this article, we’ll discuss the overall regulatory environment in relation to net neutrality, business data services (or BDS), and privacy.

In the first three quarters of 2014, Verizon’s Global Enterprise revenues declined by ~4.2%. They’re expected to decline by ~4% year-over-year in 2014.

According to Sprint, it has planned to rationalize annual costs by at least $2 billion from fiscal 2016.

In this article, we will discuss how Trump’s impeachment has already affected and will affect US tech and telecom stocks.

In the US and around the world, the telecom industry is regulated because market forces can’t maintain competition within the highly capital-intensive industry.

In September, after months of speculation that Rackspace could be acquired by CenturyLink, Inc. (CTL) and had interest from Hewlett-Packard, the company said it was no longer exploring merger and acquisition options. On the contrary, the company declared its commitment to remain independent.

JANA Partners added a stake in Rackspace Hosting Inc. (RAX). The position accounted for 1.18% of the fund’s total third-quarter portfolio.

CenturyLink (CTL) is expected to report its results for the second quarter on August 8. Analysts expect EPS of $0.25.

Continuous improvement in market conditions resulted in the highest year-to-date (or YTD) high-yield bond issuance in the primary market last week.

CenturyLink will report its fourth-quarter earnings results after the market closes today. Analysts expect sales of $5.5 billion in the fourth quarter.

In the trailing one month, net fund outflows for IYZ have been $88.2 million. In the trailing 12-month period, net fund outflows were $57.2 million.

CenturyLink’s total operating revenues fell ~7.0% year-over-year to reach $4.1 billion in 2Q17.

In the trailing 12-month period, IYZ’s net fund inflows were $3.9 million. Fund flows in the trailing five days and trailing three months were -$7.9 million and $120.0 million, respectively.

Frontier’s earnings in 3Q15 surprised Wall Street analysts, as it was expected to have loss for the quarter.

On April 1, CenturyLink stock fell 7.1% and closed at $8.79 with a market cap of $9.6 billion. The stock price has fallen 2.9% in the trailing five-day period.

On Tuesday, CenturyLink stock rose 14.5% and closed at $9.95 with a market cap of $10.8 billion. The stock price has fallen 8.4% in the trailing five-day period.

Yesterday, CenturyLink stock rose after it won a $1.6 billion order. The stock rose by about 1.4% in pre-market trading today.

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.

CenturyLink (CTL) stock was at $13.16 on December 24. This is down 0.23% from the previous session. However, CenturyLink generates robust free cash flow.

Tesla bears had made a whopping $2.75 billion in mark-to-market gains this year as of August 9, making it the most profitable US short bet year-to-date.

According to Wall Street analysts’ consensus as of July 10, on an adjusted basis, Verizon’s EBITDA is expected to rise moderately by ~5% YoY during 2Q15.

CenturyLink (CTL) stock was up ~7.3% and was trading at $11.70 as of 2:17 PM ET on June 27 after Wells Fargo upgraded its stock. Wells Fargo upgraded its rating on CTL to an “outperform” from a “market perform” and raised the stock’s target price to $14 from $12.

On June 20, CenturyLink was trading at a 12-month forward PE ratio of 8.60x. Charter Communications and Comcast’s 12-month forward PE ratios were 38.15x and 13.65x, respectively.

CenturyLink’s (CTL) top line has been declining in the last few quarters. In the first quarter, the company reported net revenues of $5.6 billion—a fall of 5.0% on a year-over-year basis.

CenturyLink (CTL) stock has risen close to 7.8% since the beginning of June. CenturyLink stock is trading at a forward PE ratio of 8.69x. The company’s earnings are estimated to rise 10.1% in 2019.

Among the 16 analysts tracking CenturyLink, two recommended a “buy,” 11 recommended a “hold,” and three recommended a “sell” as of May 14.

CenturyLink (CTL) reported its first-quarter earnings results on May 8.

CenturyLink (CTL) is scheduled to report its first-quarter earnings results on May 8. Analysts expect CenturyLink’s adjusted EPS to reach $0.27.

Frontier Communications (FTR) is scheduled to report its first-quarter earnings results on April 30.

Early this month, Guggenheim downgraded PayPal (PYPL) stock to a “neutral” from a “sell.”

Analysts expect CenturyLink (CTL) to report a ~2.5% fall in its consolidated revenues to $22.9 billion in 2019 compared to $23.4 billion in 2018.

CenturyLink’s (CTL) top line has been declining over the past few quarters on a pro forma basis.

CenturyLink reported its fourth-quarter results after the market closed on February 13. CenturyLink reported an adjusted EPS of $0.37.

In the first nine months of 2018, CenturyLink’s adjusted EPS grew ~58.8% year-over-year from $0.51 to $0.81.

As of March 16, 2018, AT&T (T) was the largest US telecom player, with a market capitalization of ~$227.2 billion.

Top US cable companies continue to show strong momentum in the broadband market.

CenturyLink (CTL), an American telecommunications company, completed its acquisition of Level 3 in November 2017.

The analyst consensus for Frontier’s 12-month target price is $8.72, which means a potential return of 9% from the closing price of $8.03 as of March 12, 2018.

Peer comparison In 4Q17, Crown Castle (CCI) had FFO[1.funds from operations] per share of $1.25, and in 2018, it’s expected to see FFO per share of $5.23 due to its acquisition of Lightower. The company is expected to grow 7.8% in 2018, 11.4% in 2019, and at a five-year rate of 15.5%. Trading slightly lower rate than the industry […]

Five of the 16 analysts rated Frontier Communications stock gave it a “sell,” while three rated the stock as a “buy,” and eight rated the stock as a “hold.”

Crown Castle’s dividend policy In 4Q17, Crown Castle (CCI) announced a dividend of $0.95 per share, bringing its 2017 dividend to $3.89, compared with $3.60 in 2016. It paid a dividend of $3.34 in 2015. Its dividend yield is currently 3.8%, and its three-year dividend growth rate is 27.8%. The company achieved its long-term annual dividend growth target of […]

Analysts’ recommendations Of the 18 analysts tracking CenturyLink (CTL) stock on January 30, 2018, ten (56%) recommended “hold,” seven recommended “buy,” and one recommended “sell.” Median target price On January 30, analysts’ median target price for CenturyLink was $18, and the company’s closing price was $17.81. CenturyLink has returned -31% in the last 12 months, 6.8% in […]

The top cable companies continue to show strong momentum in the US broadband market with Comcast (CMCSA) and Charter (CHTR) adding the most broadband customers in 3Q17 given the higher speeds.

In 3Q17, Frontier spent $0.27 billion on capex compared to $0.4 billion in 3Q16. The telecom company has been spending a lot to improve its network potential.

In 2017, CenturyLink’s management expects to spend ~$2.6 billion on capex.

In 2Q17, CenturyLink reported total core revenues of $3.7 billion, a ~7.9% reduction year-over-year.

Frontier Communications (FTR) will publish its 3Q17 results on October 31, 2017. Analysts expect Frontier’s EPS (earnings per share) to fall $1.09 in 3Q17.

CenturyLink (CTL) posted a fall in revenue of 2.4% in 2016 after a 1.0% fall in 2015. Legacy services and the data integration segments drove the fall.

Frontier Communications’ (FTR) dividend yield was ~17.9% on September 7, 2017, which was higher than the dividend yield for CenturyLink (CTL) at ~11.6%.

The story behind CenturyLink’s 8% yield Another acquisition-driven telecom company is CenturyLink (CTL). The cohesive communications company provides a wide range of services to its residential and business customers. Like Frontier, it has been impacted by the slowing traditional phone business. The company’s operating metrics, excluding those of Prism TV, are trending downwards. This trend has […]

Senior executives at AT&T (T), Verizon (VZ), and CenturyLink (CTL) joined other business leaders in a White House meeting with President Trump in June.

Among the analysts tracking CenturyLink stock, 35% recommended a “buy,” while 47% recommend a “hold,” and 18% recommend a “sell.”

CenturyLink’s (CTL) management anticipates that it will see core revenues between $3.66 billion and $3.72 billion for 2Q17.

It’s extremely important for REITs to maintain optimum debt levels, and managers work constantly to leverage balance sheets in the best possible ways.

REITs (real estate investment trusts) typically have to pay 90% of their taxable income to shareholders to qualify as an equity.

Crown Castle has been quick to respond to the needs of the day, focusing on new technology and transforming itself from a tower company to a fiber provider.

Crown Castle is expected to keep riding high on its current growth trajectory, driven by strategic investments and exposure to the booming small cell business.

AT&T (T) and its fellow ISPs seem optimistic about the FCC’s steps to roll back part of the net neutrality law that classified the Internet as a public utility rather than an information service.

The first quarter of 2017 was tough for US wireline telecom players like CenturyLink, which has 10.9 million voice lines and 5.9 million broadband subscribers.

Since the elections, the S&P 500 (SPY) (SPX-INDEX) is up 15% driven by financials (XLF), technology (XLK) (SMH), industrials (XLI), and consumer discretionary (XLY).

Wall street’s take on Frontier Previously in this series, we looked at Frontier Communications’ (FTR) value proposition in the US telecom space, and compared it with that of CenturyLink (CTL), Windstream (WIN), Verizon (VZ), and AT&T (T). In this part, we’ll look at some market views on and metrics for Frontier. Wall Street analysts’ recommendations […]

Frontier Communications (FTR) will report its results for 1Q17 on May 2, 2017. In this series, we’ll take a look at expectations for the company’s performance during the quarter.

In 4Q16, Charter Communications’s Internet customers increased ~7.3% year-over-year to reach ~21.4 million, making it the second-largest US cable player after Comcast.

Wall Street expects CenturyLink’s earnings to fall in 2017. Analysts expect CenturyLink to have EPS of $2.15 in 2017—compared to EPS of $2.45 in 2016.

Verizon expects solid FiOS Internet net additions to continue, now that the company has overcome the impacts of its 2016 strike.

During CenturyLink’s 3Q16 earnings conference call, management attributed the fall in subscribers to its focus on better credit quality customers and bundled offerings.

CenturyLink (CTL) is acquiring Level 3 (LVLT) for $34 billion in a cash and stock transaction that includes the assumption of debt.

As of June 24, 2016, AT&T was the largest global telecom company by market capitalization.

Frontier Communications’ (FTR) acquisition of Verizon’s (VZ) wireline assets in California, Florida, and Texas was completed on April 1, 2016. According to Frontier, it was a $10.5 billion deal.

During the recent MoffettNathanson Media and Communications Summit 2016, Fran Shammo, Verizon’s (VZ) executive vice president and CFO, discussed the company’s key challenges in its 5G deployment.

As of April 22, 2016, Frontier Communications (FTR) has a market capitalization of ~$6.6 billion. Frontier Communications has a forward annual dividend yield of ~7.8%.

In 4Q15, Frontier Communications’ revenue was ~$1.4 billion, ~$257 million of which came from its Connecticut operations.

Verizon (VZ) will report its results for 1Q16 on April 21, 2016. Wall Street analysts expect that on a year-over-year basis, the carrier’s earnings growth momentum will slow down during 1Q16.

According to the consensus of Wall Street analysts, Frontier’s revenue in 1Q16 is expected to be ~$1.4 billion.

AT&T GigaPower is a fiber-based video, Internet, and voice service capable of providing Internet speeds of a maximum of 1 gigabit per second.

Of the analysts covering Frontier stock, 72.2% have recommended a “buy” as of March 28, 2016. About 22.2% have recommended a “hold,” and 5.6% have recommended a “sell.”

April 1, 2016, is the expected completion date of Frontier Communications’ (FTR) acquisition of Verizon’s wireline assets in California, Florida, and Texas.

Over the last few months, US telecom stocks have generated more returns than the broader S&P 500 Index.

CenturyLink has specified that its Prism Stream will be aimed at Millennials and that the OTT video offering should reduce bandwidth requirements.

In this series, we’ll look at David Small’s comments on Verizon at the Jefferies Media & Communications Conference, including the agreement to buy the fiber assets of XO Communications.

Frontier Communications (FTR) reported its fiscal 4Q15 results on February 23, 2016. On an adjusted basis, Frontier surprised Wall Street analysts with positive earnings.

During 4Q15, the adoption of Verizon’s device plans increased sequentially. But the figure was lower than the company had anticipated.

IDC Research expects the unified communications market, which was $26.2 billion in 2014, to grow to $38 billion in 2016.

On December 3, Robert E. Gunderman, Windstream’s CFO, highlighted the low capital investment associated with initiating Kinetic, Windstream’s IPTV service.

In this part of the series, we’ll look at some value-centric metrics of Frontier and its select peers in the US telecommunication industry.

The Project Excel program is expected to boost Windstream’s Internet speeds significantly in the consumer and small business ILEC (incumbent local exchange carrier) markets by the end of 2016.

Frontier’s revenue composition changed after incorporating the performance of assets in the Verizon deal and Connecticut wireline assets.

There are some opportunities for Frontier Communications within the significantly penetrated wireline assets in the Verizon transaction.

Verizon’s (VZ) wireline asset transaction with Frontier Communications (FTR) is on track to be completed by the end of 1Q16.

Digital Realty’s (DLR) stock has had its ups and downs in 2015. After the 3Q15 earnings report, DLR fell by 0.94% to close at $71.85 per share on October 29, 2015.

The IYZ ETF generated investor returns of 4.3% in the trailing-12-month period, 5.2% in the trailing-one-month period, and 7.9% in the trailing three years.

Verizon’s wireline revenue was ~$9.4 billion during 2Q15. The wireline revenue continued its falling trend in 2Q15. It fell ~2.20% YoY.

The declining trend in AT&T’s wireline revenues continued during 2Q15. The segment declined by ~1% YoY, even after excluding 2Q14 results of Connecticut operations.

Frontier Communications (FTR) has been attractive to dividend investors in the last few years. But it’s finding it difficult to maintain its stock price and keep it from falling.

Based on the consensus estimates as of July 14, 2015, AT&T’s wireline revenue is expected to fall by ~1.7% year-over-year, or YoY, during 2Q15.

In 1Q15, AT&T’s revenue was a marginal ~0.6% less than Wall Street’s consensus estimates. In 4Q14, AT&T’s revenue came in ~0.6% above Wall Street’s consensus estimates.

In 4Q14, Coatue Management exited its position in Level 3 Communications. Coatue sold 3,122,406 shares of Level 3. It represented 1.46% of the fund’s 3Q14 portfolio.

Strategic services are gaining significance in Verizon’s enterprise segment. Strategic services benefit wireline telecommunication companies.

Over the last few quarters, Cisco has maintained its share between 40% and 50% in the service provider router market.