CenturyLink posts lower Q2 net income; revenue up
Phone company CenturyLink reported lower net income for the second quarter on Wednesday, dragged down by expenses related to early debt retirement and severance and other charges related to recent acquisitions.
The company earned $74 million, or 12 cents per share, down 55 percent from $115 million, or 19 cents per share, in the same period a year ago.
Revenue grew to $4.61 billion from $4.41 billion, helped by contributions from Savvis, which the company bought last July, as well as growing demand for high-bandwidth data services.
Excluding special items, CenturyLink earned 65 cents per share.
Analysts, on average, expected 61 cents per share on revenue of $4.58 billion, according to FactSet.
The latest quarter's net income included $123 million, or 20 cents per share, related to losses on the early retirement of debt, as well as other expenses.
For the third quarter, CenturyLink expects adjusted earnings of 54 to 59 cents per share on revenue of $4.54 billion to $4.59 billion. That compares with analysts' expectations of 60 cents per share on revenue of $4.56 billion.
For the full year, the company estimates adjusted earnings of $2.45 to $2.55 per share on revenue of $18.3 billion to $18.4 billion. It previously expected adjusted earnings of $2.35 to $2.55 per share and revenue of $18.2 billion to $18.4 billion.