CenturyLink (CTL) – Are Shares Too Cheap To Ignore?

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CenturyLink (CTL) – Are Shares Too Cheap To Ignore?

 

Broadband and telecommunication provider CenturyLink (CTL, $27.29, up $2.70) surged 10.98% after the company reported 4th quarter results that beat on earnings and revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $0.80 on $4.476 billion in revenue, up from $0.60 on $4.144 billion in revenue a year ago. Analysts had expected EPS of $0.65 on $4.420 billion in revenue. For 1st quarter 2016, the company forecasts EPS of $0.67 to $0.73 on $4.40 to $4.45 billion in revenue. For year 2016, the company forecasts EPS of $2.50 to $2.70 on $17.55 to $17.80 billion in revenue and $1.9 billion in free cash flow (FCF). This is much better than EPS of $2.36 that investors were expecting for 2016. However, this is down from 2015 EPS of $2.71 on $17.9 billion in revenue and $2.7 billion in FCF.

 

The $14.89 billion company had 6.1 million broadband subscribers and 58 data centers as of December 31, 2014. From March 2010 to December 2012, the company gave out $0.73 per share in dividends each quarter. Since March 2013, it gave out $0.54 per share in dividends every quarter. Other than the dividend cut at the end of 2012, dividends have been flat. Thus, we can assume that dividends would probably remain about $0.54 per share, which is currently an 8.12% yield. Trailing PE is 20.99, while forward PE is 11.05. AT&T (T) has a trailing PE and forward PE of 15.28 and 12.15, while Verizon (VZ) has a trailing PE and forward PE of 11.30 and 12.14, respectively.

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Akamai Technologies (AKAM) – Has It Bounced Off Bottom?

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Akamai Technologies (AKAM) – Has It Bounced Off Bottom?

 

Content-delivery network services provider Akamai Technologies (AKAM, $47.96, up $8.39) surged 21.20% after the company reported 4th quarter results that beat on earnings and revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $0.72 on $579.2 million in revenue, up from $0.70 on $536.3 million in revenue a year ago. Analysts had expected EPS of $0.62 on $567.1 million in revenue. The company also said it would buy back $1 billion of its stock. Further, it plans slow hiring instead of laying off employees. The company plans to restructure into two businesses. One will focus on web security and other services, while the other will focus on media delivery.

 

The $8.53 billion company provides internet acceleration for media companies. Based on the buyback alone, the stock should have risen 14.9%. Add that the company is still hiring and does not plan any layoffs, it seems that business is still going well. Trailing PE is 26.35, while forward PE is 17.83. The S&P 500 average PE is about 19.

 

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Viacom (VIAB) – Has it Fallen Too Much?

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Viacom (VIAB) – Has it Fallen Too Much?   Entertainment content giant Viacom (VIAB, $32.86, down $8.99) fell 21.48% after the company reported 1st quarter results that beat on earnings but missed on revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $1.18 on $3.15 billion in revenue, down from […]

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Weatherford International plc (WFT) – Has it Hit Bottom?

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  Weatherford International plc (WFT) – Has it Hit Bottom?   Swiss-based oil and gas equipment and service provider Weatherford International plc (WFT, $7.39, up $1.12) rose 17.86% after the company reported 4th quarter results that beat on earnings and was in-line on revenue. For the quarter ending December 31, it reported earnings per share […]

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Energizer Holdings (ENR) – Earnings Beat But Falling Forecast

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  Energizer Holdings (ENR) – Earnings Beat But Falling Forecast   Battery and lighting product manufacturer Energizer Holdings (ENR, $36.86, up $5.28) surged 16.72% after the company reported 1st quarter results that beat on both earnings and revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $1.16 on $506.8 million […]

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Royal Caribbean Cruises (RCL) – Has It Gotten Too Low?

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  Royal Caribbean Cruises (RCL) – Has It Gotten Too Low?   Cruise ship operator Royal Caribbean Cruises (RCL, $71.70, down $12.82) plunged 15.17% after the company reported 4th quarter results that beat on earnings but missed on revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $0.94 on $1.90 […]

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