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CenturyLink Secures Contract From H-GAC for Public Safety

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CenturyLink, Inc. (CTL - Free Report) recently announced that it has secured a contract from the Houston-Galveston Area Council (“H-GAC”) for 911 equipment and emergency call management solutions.

Per the contract — part of the HGACBuy Cooperative Purchasing Program — state agencies, local governments and select non-profit groups can now capitalize on CenturyLink’s next generation 911 (NG9-1-1) call routing services, on-premise call handling applications, data management and managed security services. The contract simplifies the task of participating government groups to modify their critical emergency services via a standardized platform.

HGACBuy comprises emergency notification-related equipment, software and services for dispatch and emergency call control.

The NG9-1-1 Solution

CenturyLink’s NG9-1-1 solution comprises emergency services Internet protocol (IP) networks, application databases and data management processes that are interconnected to Public Safety Answering Point (PSAP) premise equipment. Driven by the National Emergency Number Association, the solution is based on modern IP-based networks using advanced texting and video messaging.

The solution enables emergency services with access to a faster and more resilient system for data sharing by linking communications networks across state and local authorities.

NG9-1-1 is aimed at replacing the existing legacy systems with IP based systems. The solution routes to the appropriate emergency entity based on caller location and uses available data elements and business policies to augment PSAP routing. It supports transfer of calls to other NG9-1-1 capable PSAPs while processing emergency calls including multi-media messages to meet current and emerging public safety needs.

Share Price Performance

CenturyLink, with increased focus on customer experience, is seeking to be the world's best networking company by meeting customers’ demand for reliable and secure connections. Going forward, the company’s strong network capabilities, integrated hosting and network solutions are likely to promote growth in the cloud business.

Over the past three months, the stock has gained 17.6% against the industry decline of 1.8%.

Zacks Rank and Stocks to Consider

CenturyLink currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include Comtech Telecommunications Corp. (CMTL - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) and Ubiquiti Networks, Inc. (UBNT - Free Report) . While Comtech sports a Zacks Rank #1 (Strong Buy), Motorola and Ubiquiti carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.             

Comtech has a long-term earnings growth expectation of 5%. It beat earnings estimates in each of the trailing four quarters, the average being 123.7%.        

Motorola has a long-term earnings growth expectation of 8%. It beat earnings estimates in each of the trailing four quarters, the average being 12.1%.  

Ubiquiti has a long-term earnings growth expectation of 18.6%. It exceeded earnings estimates thrice in the trailing four quarters with an average positive surprise of 8.9%.   

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