KANSAS CITY, Mo. (AP) – Telecommunications company CenturyLink, which changed its name from CenturyTel Inc. last month after purchasing Embarq Corp., on Thursday said its second-quarter profits fell 25 percent.
But the company still beat Wall Street estimates and raised its annual earnings guidance above analysts' predictions.
The Monroe, La.-based company reported earning $69 million, or 68 cents per share. By comparison, the company earned $92.2 million, or 88 cents per share, during the same period a year ago.
CenturyLink reported adjusted income of 83 cents per share, excluding items such as $22.5 million in costs tied to the Embarq acquisition.
Analysts surveyed by Thomson Reuters expected earnings of 80 cents per share.
Revenue declined 3.6 percent from $658 million to $634.5 million, just under analysts' predictions of $634.8 million.
CenturyLink said it lost 144,000 access lines, a 7 percent decline, reflecting an industry-wide trend as consumers swap their landline phones for wireless and Internet-based telephone services. It added 74,000 high-speed Internet customers.
The company bought Overland Park, Kan.-based Embarq on July 1, becoming the fourth-largest traditional telephone company in the country.
Following the purchase, CenturyLink said it now expects annual earnings of between $3.20 and $3.30 per share, not including one-time items.
Analysts are expecting earnings of $3.05 per share.
The company added that it now expects cost savings from the Embarq purchase of $475 million, up from the original estimate of $400 million.
CenturyLink said Embarq posted an 8 percent decrease in revenue to $1.3 billion during the quarter, losing 163,000 access lines but adding 12,200 high-speed Internet customers.
Combined with Embarq, CenturyLink serves mostly rural customers in 33 states, although it has a few urban markets, including Las Vegas.