CenturyTel 3Q Profit Soars On Merger, Beats Forecasts
DOW JONES NEWSWIRES
CenturyTel Inc.'s (CTL) third-quarter profit more than tripled, beating
analysts' estimates, as results were beefed up by the company's acquisition of
fellow telecommunications provider Embarq.
The company also said it expects to earn 84 cents to 88 cents a share in the
fourth quarter. Analysts polled by Thomson Reuters expected 81 cents. It also
raised its 2009 target to $3.45 to $3.50 from $3.20 to $3.30.
Telecom companies such as CenturyTel that provide landline services have seen
those services hurt as consumers cut back or drop landlines in favor of other
telecom services.
In September, Moody's Investors Service said CenturyTel could benefit from a
much larger operating scale because of its recent merger with Embarq, but it
also said the company's core operations will likely continue to see "relentless
pressure" because of increased competition from cable operators, wireless
carriers and voice-over-Internet calling.
CenturyTel reported earnings of $280.8 million, or 94 cents a share, up from $
84.7 million, or 83 cents, a year earlier. Excluding prior-year gains in both
periods, earnings rose to 90 cents from 81 cents.
Revenue nearly tripled to $1.87 billion on the merger.
In August, the company had forecast earnings of 78 cents to 82 cents on
revenue of $1.85 to $1.89 billion.
Shares closed at $33.18 Wednesday and didn't trade premarket. The stock is up
21% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-05-090911ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|