Back to top

Analyst Blog

Zacks Equity Research

CenturyLink Inks Defense Deal

CTL VZ

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

One of the leading integrated telecommunications service providers, CenturyLink Inc. (CTL - Analyst Report) inked a 10-year deal worth $750 million with the U.S. defense department for providing high-speed Internet service to Defense Research and Engineering Network (DREN) III.

CenturyLink will connect the supercomputers of each department with its advanced fiber-optic network, thereby delivering speeds of 50 Mbps to 100 Gbps. Moreover, the company will connect the scientists and engineers of popular research institutions with the U.S. defense group by delivering Ethernet, Internet Protocol and optical wave services through a Virtual Private Local Area Network Service.

CenturyLink is also taking initiatives to curtail access line losses, though it exerts pressure on voice and network access revenues. The company is bundling integrated services, promoting new services such as video, obtaining new wireless spectrum from Federal Communications Commission (FCC) and improving infrastructures through network investment. This should work in favor of the company’s revenues and earnings.

Further, the company continues to strengthen its competitive position through partnerships and product launches. CenturyLink has started reselling Verzion Communications Inc.’s (VZ - Analyst Report) products and services to small business customers and aims to expand its services in all markets over the next several months in a phased manner.

However, stiff competition from other low-cost telecom operators like LEAP Wireless International Inc. and Clearwire Corp. significant integration challenges coupled with increased operating expenses resulting from the acquisitions may impede the company’s operating performance, going forward.

CenturyLink currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%