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CenturyLink’s Earnings Steal the Show From Barron's CenturyLink’s Earnings Steal the Show By Lawrence C. Strauss Shares of telecom provider CenturyLink (CTL) surged Thursday morning on the heels of a strong earnings report. The stock was at $20.42 late Thursday morning, up more than 10% on the session. Matthew Dolgin, a Morningstar analyst, noted the revised guidance “provides reassurance that the firm is reaping the benefits from the Level 3 acquisition.” CenturyLink bought Level 3 Communications last November in a cash and stock deal valued at about $34 billion, according to FactSet. With a heavy debt load, the company has not raised its dividend, currently 54 cents a share on a quarterly basis, in many years. And concerns do remain about whether the company can sustain it. “As our results demonstrate, we remain committed to and confident in our ability to maintain the dividend,” says CenturyLink CEO Jeff Storey. Dolgin notes that continually paying the dividend “reduces the company’s ability to weather a crisis and keeps it living closer to the edge.” |
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