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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;

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