CenturyLink, Inc. CTL communicated that, in concert with Intel Corporation INTC, it has developed an advanced gateway to bring in-home gigabit connections to subscribers with managed network capabilities and embedded security. The companies intend to meet the rapidly growing number of connected devices per person, which is projected to surpass 13 by 2022, per the Cisco Visual Networking Index.
With that in mind, CenturyLink’s cutting-edge gateway utilizes Intel’s Wi-Fi 6 Gig+ technology to deliver gigabit speeds while providing major enhancements in latency for gaming and video-intensive applications over Wi-Fi 5. Its Wi-Fi 6 gateway is expected to lead the way by enabling connected home with state-of-the-art technology. This is because as new wireless devices enter the market, customers are ready with a high-performing network that helps transmit information more efficiently.
CenturyLink’s dynamic gateway, which is likely to be available to customers in early 2020, will provide customers with a premium home Wi-Fi experience and help in managing the needs of an increasing number of connected devices. The company worked closely with Intel to develop this gateway, which provides faster connection with security features for performance enhancement and customer data protection.
This apart, CenturyLink has been shifting focus from integration to transformation efforts. It aims to generate revenue growth in its business markets and believes the scale of its global assets alongside innovative product portfolio to be accretive to earnings. Further, the company is working with customers to enable their 5G roadmaps while augmenting its fiber footprint.
CenturyLink remains confident in its ability to meet its deleveraging objectives and reach the target leverage range of 2.75-3.25x (net debt to adjusted EBITDA) within the next three years, on the back of favorable business dynamics. The company intends to return significant value to shareholders while investing in revenue and EBITDA growth drivers.
CenturyLink has long-term earnings growth expectation of 7.4%. Backed by strong execution of operational strategies, the stock has gained 23.7% compared with the industry’s growth of 8.2% in the past six months.
The Zacks Consensus Estimate for its next-year earnings has been revised 5.1% upward over the past 60 days. The company topped earnings estimates thrice in the trailing four quarters, delivering an average positive surprise of 8.8%.
CenturyLink currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader industry are Qualcomm Incorporated QCOM and Ubiquiti Inc. UI, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm has long-term earnings growth expectation of 14%.
Ubiquiti has long-term earnings growth expectation of 9.4%.
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