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Why CenturyLink Stock fell by 12% – Spotless Fool



The shares of Telecommunications Provider CenturyLink (NYSE: CTL) dropped on Thursday with trade by 12.1% at 14:30. EST – after the company announced its fourth quarter and profits for the full year

On the one hand, CenturyLink's results were not that bad. Sales of $ 5.78 billion missed expectations by about $ 20 million, but pro forma profits of $ 0.37 per share polled analysts.

So what

Viewed from another perspective, however, the results of CenturyLink were just terrible, calculated according to the accounting standards of GAAP, CenturyLink lost $ 2.26 per share for the quarter, wiping out all the profits earned earlier in the year and leaving CenturyLink with a loss of $ 1

.63 per share for the year. (from the point of view of shareholders) came in this line from the profit statement: CenturyLink is "a year's reduction the dividend to $ 1.00 from $ 2.16 per share. "

Read This: CenturyLink Cuts Its Dividend by More Than Half

Now what, of course, could be expected at $ 2.16 per share, CenturyLink paid a dividend of almost 15% of its own market capitalization – each year . Dividends that are high are usually not sustainable. However, CenturyLink's chief financial officer, Neal Dev, had just told investors three months ago that management was still "convenient" to pay out the dividend.

Rich Smith has no position in any of these stocks. Motley Fool has no position in any of these stocks. Motley Fool has a disclosure policy.


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