CenturyLink’s Revenue Declines: Trades below Moving Averages
Why Certain Stocks Are Trading below Their Moving Averages in XLK
About CenturyLink
CenturyLink (CTL) is a US multinational communications company. It was founded in 1968 and it’s headquartered in Louisiana. It provides communications and data services to residential, business, governmental, and wholesale customers. It’s the third largest communications company in the US after AT&T and Verizon. It accounts for 5.02% of the Technology Select Sector SPDR Fund ETF (XLK) and 0.1% of the SPDR S&P 500 ETF Trust (SPY).
Moving averages and closing price
CenturyLink’s last trading price, or closing price, on May 19, 2015, was $33.96. This was lower than its 20, 50, and 100-day moving averages. Its 20-day moving average price is $35.37. The firm’s 50-day moving average price is $35.25, while its 100-day moving average price is $36.84.
CenturyLink is trading 4.15%, 3.80%, and 8.48% below its 20, 50, and 100-day moving averages, respectively.
In the above chart, you can see that CenturyLink’s stock price depreciated by over 16.90% in the last six months. CenturyLink’s 52-week high and 52-week low stand at $45.67 and $33.75, respectively.
CenturyLink declares 1Q15 results—revenue declines
On May 5, 2015, CenturyLink declared its 1Q15 results. It reported revenue of $4.06 billion—a 1.9% decline on a YoY (year-over-year) basis. The net income for the period was $192 million—compared to $203 million in 1Q14. The EPS (earnings per share) reduced from $0.35 per share in 1Q14 to $0.34 per share in 1Q15.
The decline in revenue was attributed to a drop of 0.8% in the consumer segment and 2.8% in the business revenue segment.
Other companies’ moving averages
AT&T’s (T) closing price was $34.37 on May 19, 2015. This was higher than its 20, 50, and 100-day moving averages of $34.06, $33.37, and $33.63, respectively.
Verizon’s (VZ) closing price was $49.55 on May 19, 2015. This was lower than its 20-day moving average of $49.98. However, it was relatively higher than its 50 and 100-day moving averages of $49.41 and $48.70, respectively.
Future outlook
The long-term outlook for the stock is positive, according to analysts’ recommendations. There’s an increase in the profit margins and the return on equity. The firm pays a 6.1% dividend to investors. This is among the highest in its subindustry. CenturyLink increased its shareholder wealth by repurchasing shares worth $170 million in 1Q15.
In the next part of this series, we’ll discuss Micron Technology’s stock movement with respect to its moving averages.
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