|Bid||13.74 x 900|
|Ask||13.80 x 900|
|Day's Range||12.89 - 13.94|
|52 Week Range||12.74 - 24.20|
|Beta (3Y Monthly)||0.74|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 12, 2019 - Feb 18, 2019|
|Forward Dividend & Yield||2.16 (16.90%)|
|1y Target Est||15.71|
It was a tense earnings report that came with a surprise pay cut, but investors should be satisfied...for now.
CenturyLink surprised investors with the decision to cut its dividend, even though the distribution was well-covered by free cash flow. Here’s management’s thinking.
Shares of CenturyLink rebounded Friday, two days after the company announced it was cutting the annual shareholder dividend in half, causing its stock to drop to lows it hasn’t experienced in nearly 22 years. CenturyLink stock (NYSE: CTL) dropped 12 percent on Thursday, a day after company executives slashed the dividend from $2.16 per share to $1. CEO Jeff Storey said on the call that the dividend cut is “not based upon any concern for the outlook of the business,” but instead is focused on debt reduction.
How CenturyLink Fared in the Fourth Quarter(Continued from Prior Part)CenturyLink’s revenue trends CenturyLink’s (CTL) top line has been declining over the past few quarters on a pro forma basis. CenturyLink’s net revenues in the fourth
Shares of CenturyLink (CTL) plummeted 13% in Thursday's trading session after the telecommunication company said it would cut its dividend by more than half. While investors — who were certain the dividend would remain intact after management pledges — grew angry and fled the stock in droves, this provides an opportunity for the company to improve its financial health, including through increasing free cash flow. But some argue that financial wellbeing is meaningless if investor sentiment is negative: While free cash flow may increase, investor anger and a feeling of betrayal may haunt the company more than anything. Nevertheless, Oppenheimer's top analyst Timothy Horan maintains his Outperform rating on CTL stock with a $20 price target, which implies about 55% potential upside from current levels. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Timothy Horan has a yearly average return of 15% and a 70% success rate, and he's ranked 47 out of 5,163 analysts.Lost in the news for many investors was CenturyLink’s actual earnings update. The company reported revenue of $5.8B, including $2.2B EBITDA and free cash flow of $741M. Horan says that revenue is “in line” with his estimates, though both EBITDA and free cash flow came in lower than expected. Moving forward, the analyst is optimistic about the slashed dividend (from $2.16 to $1.00), which he says “will generate an incremental $1.24B in FCF in 2019.”One challenge facing CenturyLink is in its IT & Managed Services and Voice and Collaboration segments. Hogan says that CenturyLink “continues to face pressure from cloud-based service provider competitors,” noting that these two segments “fell 14% and 7.8% y/y to $145M and $1.6B, respectively.” Then biggest news in Hogan’s eyes is the dividend cut. He says, “the new mid-30s payout ratio should support strong capex spend (we note $1.24B in additional cash flow) as well as potential M&A activity to reinvigorate stalling legacy assets. We believe management team is cost disciplined and can expand EBITDA margins and provide another capex/FCF tailwind.” Hogan continues, saying, “while disappointing to the yield-minded investor base attracted to [CenturyLink], we believe the dividend cut was the proper move to invest in growth and pay down debt faster. The management team should execute on the additional identified cost savings and begin to ramp up capital return to shareholders in a year or so.” In other words, Hogan is optimistic that CenturyLink will make good use of the impending cash influx, even as high-yield aren’t too happy.The Wall Street community isn’t sold on CenturyLink. TipRanks analysis of 13 analyst ratings shows a consensus Hold rating. Of the 13 analysts, four recommend Buy, six say Hold and three recommend Sell. There is an average price target of $16.17, representing a 27% rise from current levels. (See CTL's price targets and analyst ratings on TipRanks) More recent articles about CTL: * NVIDIA (NVDA) Stock: Prepare for Range-Bound Trading Ahead * Facebook (FB) Storms Into the Blockchain Space; Top Analyst Weighs in on the Stock * Opportunities for Apple (AAPL) to Lift Stock Through Acquisitions, J.P. Morgan Says * All Eyes on Nvidia (NVDA) Stock Ahead of Earnings Today
CenturyLink Inc NYSE:CTLView full report here! Summary * Perception of the company's creditworthiness is neutral but improving * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate Bearish sentimentShort interest | NeutralShort interest is moderate for CTL with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding CTL totaled $16.05 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Telecommunications Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator with a strengthening bias over the past 1-month. CTL credit default swap spreads are decreasing, indicating some improvement in the market's perception of the company's credit worthiness. Additionally, they are within the middle of the range set over the last three years.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Shares of CenturyLink plummeted Thursday to the lowest levels seen since the late-1990s, after the communications services company slashed its dividend by more than half, prompting a number of Wall Street analysts to cut their ratings and price targets.
In conjunction with its fourth-quarter earnings release, CenturyLink CTL announced it will cut its annual dividend to $1 per share from $2.16. Given that management constantly implied support for its outsize dividend in the past, this news overshadowed performance by the company that we found encouraging.
The bulls tried their best, but when push came to shove, they just didn't have enough fight. Spurred by just a few too many lackluster earnings reports, the S&P 500 ended yesterday's action down to the tune of 0.27%.The Coca-Cola Co (NYSE:KO) was one of those names with an alarming quarterly report. KO stock fell more than 8% on the heels of expected Q4 sales and profits, but a 2019 profit outlook that was considerably less than estimated. Centurylink (NYSE:CTL) ended the day even deeper in the red, though, sliding 13% after cutting its divided in half.There were a handful of winners, like Encana (NYSE:ECA), which advanced 2.2% in step with rising oil prices, and was up another percentage point in after-hours trading. In fact, there was more bullish volume than bearish volume on Thursday. There just wasn't enough buying interest in the right stocks to lift the market over the hump.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHeaded into the weekend, the stock charts of Davita (NYSE:DVA), BorgWarner (NYSE:BWA) and Fastenal Company (NASDAQ:FAST) are of the most interest. Here's why, and what to look for. Fastenal Company (FAST)Back in October, Fastenal Company shares were in something of a freefall, After bumping into a long-standing resistance line in August, all signs pointed to a trip back to the lower edge of the trading range that has framed the volatile rally going back to 2016. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? That never happened … at least not in full. Rather than making a complete pullback, FAST stock hit a low about halfway there, and then made a triple bottom and established a new support line in December.Now we're back at the long-term ceiling, and hinting at another bearish outcome. The question is, which floor is the one that will do the job? Click to Enlarge • The trading range is framed by white dashed lines on both stock charts. We bumped into the upper one this week.• The newly developed intermediate-term floor is marked with a yellow dashed line, also on both stock charts.• The weekly chart's stochastic indicator is in overbought territory, which has also coincided with pullbacks; that's not a condition that lasts long. Davita (DVA)With nothing more than a quick glance, the 0.3% gain Davita dished out yesterday is little to cheer. Indeed, DVA has been suspiciously left out of the most of the post-December rally.A closer, second look at Thursday's action, though, sets the stage for renewed bullishness in light of the other clues that have materialized over the course of the past couple of weeks. Click to Enlarge • While Thursday's gain was ho-hum, the intraday turnaround was telling. The bears had a chance to tip it over with the early move back under key short-term moving average lines, but the bulls weren't going to give up any ground.• And those bulls are certainly strong in number. Even beyond yesterday's volume surge behind the advance, the accumulation (buying) days have seen higher and higher volume.• There may be some brewing resistance around the $58.10 area, which is marked with a dashed blue line on both stock charts. BorgWarner (BWA)Finally, it's not said often enough, but there's a lot of value in spotting a surge in volatility from a particular stock, or index. When the war between the buyers and sellers heats up, it often signals a turning point.BorgWarner shares have been particularly volatile the past few days, in all the right places. It looked like the bears were going to take control last week, but the bulls made a strong statement yesterday. They also failed to move above the one key ceiling they really needed to clear, however, so the outcome of this skirmish hangs on the balance.Either way, some something big is likely to come from the melee. Click to Enlarge • The big line in the sand is $41.50, plotted with a yellow dashed line on both stock charts. That's where BorgWarner has peaked several times since October, and it was still trouble as of yesterday.• Also noteworthy, however, is how the purple 50-day moving average line has stepped up as a technical floor.• Even before yesterday's big gain, the bullish volume was brewing, suggesting the undertow is bullish. The stumble from last week, though on above-average volume, didn't take shape with a lot of bears' support.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post 3 Big Stock Charts for Friday: Davita, Fastenal Company and BorgWarner appeared first on InvestorPlace.
If a dividend produces a yield that's well in excess of what's out there in the marketplace, you should be skeptical of that payout and question whether it is sustainable, rather than being opportunistic and believing you may have a real bargain on your hands. , the hodgepodge of a telecommunications company that last night cut its dividend, despite the fact that management had stood by it in previous presentations -- and some very good analysts believed the company would continue to support it, too. For several years now, I have been getting calls about the safety of this behemoth dividend because it had the largest yield in the S&P 500.
In its quarterly earnings announcement, CenturyLink said its board approved reducing the company's annual dividend to $1 from $2.16. The dividend cut came alongside the company's earnings announcement, in which it reported adjusted fourth-quarter earnings of 37 cents a share, up from 18 cents in the comparable year-earlier period. TheStreet's Jim Cramer said the moral of the CenturyLink story is this: Never reach for outsized yield, as there is a good chance you will get burned.
Centurylink Inc (NYSE: CTL ), the second largest U.S. communications provider to global enterprise customers, reported mixed fourth-quarter results and management slashed its dividend payout by 50 percent. ...
(Bloomberg) -- CenturyLink Inc. fell on Thursday after it reported fourth-quarter results and said it would cut its dividend by more than half. Analysts said that while the step would be a painful one for the stock, they considered it necessary to shore up the company’s finances.
On Wednesday, the company announced that it would cut its dividend on an annual basis from $2.16 a share to $1.00, a 54% haircut. CenturyLink stock was down 9%
CenturyLink Stock Fell 10.8% Due to Q4 Results and Dividend CutCenturyLink’s fourth-quarter results CenturyLink (CTL) reported its fourth-quarter results after the market closed on February 13. CenturyLink reported an adjusted EPS of $0.37 in the