Today’s Research Reports on Stocks to Watch: Dropbox and CenturyLink
Shares of CenturyLink were in full speed on Thursday after reporting an impressive second quarter and boosted guidance moving forward. Shares of Dropbox initially were in the green but tumbled in after-hours trading after the company said it would advance its lock-up expiration date by several days. The company also lost its COO.
RDI Initiates Coverage on:
Dropbox, Inc. shares closed up 9.13% on Thursday on trading volume roughly three times higher than usual, but nearly gave back those gains in after-hours trading. Though the company beat expectations in the second quarter and also issued an outlook for the current quarter that also beat estimates, the online storage firm saw its shares drop after deciding to advance its lock-up expiration date by several trading days. The lock-up period is now expected to expire on August 23, will unlock an additional 356.4 million shares for trading. Shares may have also been affected by the company’s COO Dennis Woodside departing. Woodside will be stepping down in early September after four years with the company. He will remain an advisor until the end of the year. For the second quarter, Dropbox earned 11 cents a share, beating analysts’ estimates of 6 cents. Revenue at $339.2 million was an increase of 27% and also beat expectations of $330.9 million.
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CenturyLink, Inc. shares closed up a little over 13% on about 32.3 million shares traded on Thursday. Shares were flying after the company reported solid second quarter results and a favorable outlook. The telecommunications company reported net income of $292 million, or 27 cents per share for the second quarter. The figure compares to the $69 million, or 6 cents per share, a year ago. Analysts had been expecting just 18 cents a share. Revenue at $5.90 billion was a decline however from the $6.04 billion the company saw in the year ago quarter. Analysts had been waiting for revenue of $5.92 billion. Looking ahead, the company has boosted its outlook for fiscal year 2018 and is expecting adjusted profits to be in the range of $9 billion and $9.15 billion. Previously the company was expecting a range of $8.75 billion and $8.95 billion. CEO Jeff Storey remarked on the call, "I’m excited about the potential we see in the business to continue to grow free cash flow per share. We believe this is the most important value driver in our business, and we had a good quarter on that front."
Access RDI’s CenturyLink, Inc. Research Report at:
Our Actionable Research on Dropbox, Inc. (NASDAQ: DBX) and CenturyLink, Inc. (NYSE: CTL) can be downloaded free of charge at Research Driven Investing.
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