Telecommunication service provider,
) announced a stock repurchase program of up to $1 billion of its
common stock over a period of one year. This new share buyback
plan will follow the existing share repurchase, which is expected
to close in the second quarter of 2014.
With the aim of offering healthy returns to its shareholders,
the company repurchased 50.8 million shares through Feb 11,
aggregating $1.72 billion since the inception of a $2.0 billion
buyback program initiated in Feb 2013.
We believe the company's commitment to return shareholders'
value stems from its increased financial strength. CenturyLink
generated operating cash flow of $7,432 million in 2013, while
free cash flow was $3,071 million.
Apart from balance sheet, the company is also progressing with
its business growth. CenturyLink redesigned its operating
segments to strengthen its grip over the market as well as remain
fully committed to wholesale, consumer and hosting customers.
The company, over the last few years, has been witnessing a
slower rate of revenue declines and expects the trend to continue
in 2014. The primary factors contributing to this include
long-standing ties with clients by bundling integrated services,
launch of new and attractive services, consistent technology
upgrades, infrastructure enhancement, better usage of networks
and profitable collaborations.
CenturyLink is also benefiting from its continuous investments
in Product portfolio, which places it as an integrated end-to-end
solution provider to various businesses. CenturyLink's Prism TV
service is performing well and is expected to compensate for the
revenue loss due to reduction of single play voice customers. The
company also remains committed to take Prism TV service to
However, stiff competition from operators like
Leap Wireless International Inc.
Frontier Communications Corp.
Windstream Holdings Inc.
), deteriorating legacy voice and access revenues, regulatory
issues and constant need for technology upgrades may impact the
company's operating performance.
CenturyLink has a Zacks Rank #3 (Hold).
CENTURYLINK INC (CTL): Free Stock Analysis
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