Centurylink Inc (NYSE: CTL) stock rose over 2.8% in the pre market session on May 9th, 2018 as in the first quarter of FY 18 as they reported the adjusted earnings per share of $0.25, beating the analysts’ estimates for the adjusted earnings per share of $0.19.
On the other hand, the company had reported 1.7 percent fall in the adjusted revenue to $5.95 billion in the first quarter of FY 18, missing the analysts’ estimates for revenue of $6 billion. This is due to declines of 1% in Business revenue and 4.7% in Consumer revenue. Further, the company has adopted the new revenue recognition standard, ASC 606. The adoption of this new standard has negatively affected total revenue by approximately $15 million in the first quarter, with $10 million in Consumer and $5 million in Business.
Furthermore, within Business, the Enterprise group was negatively affected by approximately $11 million, slightly offset by a benefit to Medium and Small Business revenues for $4 million. The Wholesale and Indirect and the International and Global Accounts groups were affected minimally.
Moreover, at end of first quarter 2018, CTL has achieved approximately $215 million of annualized run-rate adjusted EBITDA synergies. The integration-related expenses for first quarter 2018 were $71 million, of which $65 million impacted adjusted EBITDA and $79 million impacted free cash flow. In total, CTL has incurred approximately $241 million in Level 3 integration-related expenses.
For the full year 2018, CTL expects Adjusted EBITDA to be in the range of $8.75 to $8.95 billion, Free cash flow is expected to be in the range of $3.15 to $3.35 billion, Dividends to be about $2.30 billion, Free cash flow after dividends is expected to be in the range of $850 million to $1.05 billion, GAAP interest expense to be about $2.25 billion, Cash interest is expected to be $2.10 billion and Capital expenditures is expected to be approximately 16% of Revenue. Further, CTL has reduced its outlook for depreciation and amortization to $5.1 to $5.3 billion from $5.4 to $5.5 billion, due to valuation adjustments related to purchase price accounting. All other outlook measures remain unchanged. After the close of first quarter, CTL has received an anticipated tax refund of $314 million.
Meanwhile, CTL is named as a Top Socially Responsible Dividend Stock by Dividend Channel, that signifies a stock with above-average ”DividendRank” statistics including a strong 11.9% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria.