12.05.2020, 21:10
Seeking Alpha ist eher optimistisch...
CenturyLink: Another Step Forward
...One of the major items helping the bottom line is the improved balance sheet. Last year saw a number of debt repayments and restructurings, which helped the company enter this year much stronger. Interest expenses in Q1 2020 were down $74 million over the prior year period, and as the chart below shows, are now below $1.8 billion on an annual run rate. In just six quarters, the annual interest run rate is down by $432 million, which is tremendous progress for the company. ...
...When your net income is only around $300 million a quarter, getting your interest costs down by $74 million year over year is a big deal. In fact, things might be even better in Q2, because LIBOR rates have dropped another 70 basis points so far, and CenturyLink has more than $7 billion in unhedged variable rate debt on the balance sheet. The company also used its revolving credit facility to pay off its 5.625% notes that were due on April 1st. ...
...In the end, CenturyLink has taken another step forward. Revenue declines are improving, and adjusted earnings are showing nice growth. With all of the financial moves made in the past year or so, the balance sheet is in much better shape, and interest costs are coming down nicely. For now, investors are being paid to hold this name for the long run, with an annual dividend yield of more than 10% easily outpacing many other income generating assets in this market. ...
https://seekingalpha.com/article/4346249...quote_news
CenturyLink: Another Step Forward
...One of the major items helping the bottom line is the improved balance sheet. Last year saw a number of debt repayments and restructurings, which helped the company enter this year much stronger. Interest expenses in Q1 2020 were down $74 million over the prior year period, and as the chart below shows, are now below $1.8 billion on an annual run rate. In just six quarters, the annual interest run rate is down by $432 million, which is tremendous progress for the company. ...
...When your net income is only around $300 million a quarter, getting your interest costs down by $74 million year over year is a big deal. In fact, things might be even better in Q2, because LIBOR rates have dropped another 70 basis points so far, and CenturyLink has more than $7 billion in unhedged variable rate debt on the balance sheet. The company also used its revolving credit facility to pay off its 5.625% notes that were due on April 1st. ...
...In the end, CenturyLink has taken another step forward. Revenue declines are improving, and adjusted earnings are showing nice growth. With all of the financial moves made in the past year or so, the balance sheet is in much better shape, and interest costs are coming down nicely. For now, investors are being paid to hold this name for the long run, with an annual dividend yield of more than 10% easily outpacing many other income generating assets in this market. ...
https://seekingalpha.com/article/4346249...quote_news