CTL - Yes CenturyLink Can Still Prosper in a 5G World
CenturyLink's (NYSE: CTL) fourth-quarter earnings came with mixed reviews for investors. The fiber-optic company met earnings while beating Wall Street expectations in revenue. This news sent the stock falling in after-hours trading.
The financial condition of CenturyLink rightly causes some concerns. The debt burden remains heavy, and the company suffered for years as customers turned away from fiber-based communications. However, it has returned to profit growth as the industry repurposes the company's fiber network. This new niche could make CenturyLink stock a potentially lucrative investment.
CenturyLink earned a non-GAAP (adjusted) profit of $0.33 per share in the fourth quarter. That amounts to a drop of 10.8% from the same quarter last year, when the company reported a profit of $0.37 per share. Revenue of $5.57 billion saw a 3.8% decline from the fourth quarter 2018 number of $5.78 billion. Still, that reduced number came in $20 million ahead of consensus estimates.