Filed Under: ,
Tickers in this Article: CTL
CenturyTel (NYSE:CTL) will release its third quarter results on Wednesday, November 7, 2012. Analysts are expecting the company to report a profit of 59 cents a share, up from 34 cents a year ago.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 5 Tricks Companies Use During Earnings Season

What to Expect: Analysts are expecting CenturyTel to report earnings of 59 cents per share, up 73.5% from a year ago, when the company reported earnings of 34 cents per share.

For the fiscal year, analysts are expecting earnings of $2.53 per share.

CenturyTel's expected revenue of $4.57 billion for the quarter is below last year's reported figure of $4.6 billion by 0.6%. The anticipated revenue for the fiscal year is $18.37 billion.

Company Performance: Revenue has risen year-over-year for four consecutive quarters now. It increased 4.7% to $4.61 billion in the second quarter. Prior to that, the figure rose more than twofold in the first quarter, more than twofold in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

P/E ratio for CTL is 46.8. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Can Investors Trust the P/E Ratio?

The stock price has fallen 7.8% since August 6, 2012, from $41.76 to $38.50. Currently, CenturyTel's stock is on a downward trend. The share price has fallen $1.38 since October 3, 2012.

The Competition: CenturyLink is a communications company that offers communications services, including Internet access, broadband services, and voice services. The majority of analysts (14 of 18) give CenturyTel a buy rating. They have become increasingly pessimistic about the stock, as the number of buy ratings has dropped slightly over the last three months.

The company's closest competitor in the communications services industry is AT&T (T). Analysts are more optimistic about CenturyTel than about AT&T. Only eight out of 29 analysts rate the latter a buy.

comments powered by Disqus

Trading Center