We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in the Cards for CenturyLink's (CTL) Q1 Earnings?
Read MoreHide Full Article
CenturyLink, Inc. is scheduled to report first-quarter 2020 results after the closing bell on May 6. In the last reported quarter, adjusted earnings matched the Zacks Consensus Estimate. In the first quarter, the company is likely to have generated lower consolidated revenues on a year-over-year basis due to volatility in demand amid the coronavirus pandemic.
Factors at Play
During the first quarter, the company augmented its portfolio of voice and real-time communication services by launching CenturyLink Engage that delivers flexible cloud calling and provides customers with an optional online directory listing, customer relationship management integration and other add-on tools. The company also secured a task order, valued up to $1.6 billion, from the U.S. Department of the Interior to deliver managed core network with upgraded and secured cloud services.
In first-quarter 2020, CenturyLink teamed up with Microsoft Corp.’s cloud computing service, Azure, to be part of the Networking Managed Service Provider Program. The alliance is likely to reinforce CenturyLink’s commitment to edge computing services, fueled by increasing migration of enterprise workloads to multi-cloud networking environments with seamless and cost-effective cloud and hybrid networking solutions. The company further extended its year-long partnership with IBM and added the latter’s Cloud Direct Link services to its accretive portfolio of Cloud Connect Dynamic Connections in order to provide a secure and cost-effective platform to access dedicated private networks with ultra-low latency connections.
Despite its sustained focus on infrastructure development for improving revenue trajectory in the long term, CenturyLink is likely to report lower revenues for the first quarter. This is due to a tough year-over-year comparison, as the company faced challenging macroeconomic conditions in the quarter, triggered by the coronavirus pandemic. For the March quarter, the Zacks Consensus Estimate for total revenues stands at $5,484 million, implying a decline of 2.9% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 36 cents, indicating an improvement of 5.9% from the prior-year quarter’s reported figure, driven by cost-cutting initiatives and operational efficiencies through several methods, including network simplification and rationalization.
Earnings Whispers
Our proven model predicts an earnings beat for CenturyLink this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +1.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CenturyLink currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Motorola Solutions, Inc. (MSI - Free Report) is +2.56% and it carries a Zacks Rank of 3.
The Earnings ESP for Cisco Systems, Inc. (CSCO - Free Report) is +0.72% and it carries a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Is a Beat in the Cards for CenturyLink's (CTL) Q1 Earnings?
CenturyLink, Inc. is scheduled to report first-quarter 2020 results after the closing bell on May 6. In the last reported quarter, adjusted earnings matched the Zacks Consensus Estimate. In the first quarter, the company is likely to have generated lower consolidated revenues on a year-over-year basis due to volatility in demand amid the coronavirus pandemic.
Factors at Play
During the first quarter, the company augmented its portfolio of voice and real-time communication services by launching CenturyLink Engage that delivers flexible cloud calling and provides customers with an optional online directory listing, customer relationship management integration and other add-on tools. The company also secured a task order, valued up to $1.6 billion, from the U.S. Department of the Interior to deliver managed core network with upgraded and secured cloud services.
In first-quarter 2020, CenturyLink teamed up with Microsoft Corp.’s cloud computing service, Azure, to be part of the Networking Managed Service Provider Program. The alliance is likely to reinforce CenturyLink’s commitment to edge computing services, fueled by increasing migration of enterprise workloads to multi-cloud networking environments with seamless and cost-effective cloud and hybrid networking solutions. The company further extended its year-long partnership with IBM and added the latter’s Cloud Direct Link services to its accretive portfolio of Cloud Connect Dynamic Connections in order to provide a secure and cost-effective platform to access dedicated private networks with ultra-low latency connections.
Despite its sustained focus on infrastructure development for improving revenue trajectory in the long term, CenturyLink is likely to report lower revenues for the first quarter. This is due to a tough year-over-year comparison, as the company faced challenging macroeconomic conditions in the quarter, triggered by the coronavirus pandemic. For the March quarter, the Zacks Consensus Estimate for total revenues stands at $5,484 million, implying a decline of 2.9% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 36 cents, indicating an improvement of 5.9% from the prior-year quarter’s reported figure, driven by cost-cutting initiatives and operational efficiencies through several methods, including network simplification and rationalization.
Earnings Whispers
Our proven model predicts an earnings beat for CenturyLink this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +1.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CenturyLink, Inc. Price and EPS Surprise
CenturyLink, Inc. price-eps-surprise | CenturyLink, Inc. Quote
Zacks Rank: CenturyLink currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Motorola Solutions, Inc. (MSI - Free Report) is +2.56% and it carries a Zacks Rank of 3.
The Earnings ESP for Cisco Systems, Inc. (CSCO - Free Report) is +0.72% and it carries a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>