Stock Alert: Federal Task Order Drives Up CenturyLink Shares

(RTTNews) - Shares of communications services provider CenturyLink Inc. (CTL) are rising for the past few days on back of its new federal task order valued up to $1.6 billion announced on Jan. 16. Since then shares are up 14.9% from $13.27 to $15.25. The stock closed Wednesday's trading session at $15.07, up 35 cents or 2.38%. Trading volume surged to 24.7 million versus an average volume of 12.5 million.

On Jan. 16, CenturyLink won a task order, worth up to $1.6 billion, to provide secure network services and IT modernization solutions to the U.S. Department of the Interior (DOI) via the General Services Administration's Enterprise Infrastructure Solutions (EIS) program. The task order covers two areas and has a combined maximum value of $1.6 billion, with 11 one-year options that run through 2032.

Most recently on Jan. 22, 2020, CenturyLink won a task order to provide secure connectivity to the U.S. Department of Defense Education Activity (DoDEA)'s learning network via the General Services Administration's Enterprise Infrastructure Solutions (EIS) program. This task order marks the first EIS award made by DoD.

The company, on Jan. 16, 2020, agreed to sell $1.25 billion aggregate principal amount of its newly-issued 4.000% Senior Secured Notes due 2027 in a private offering that will not be registered under the Securities Act of 1933.

CenturyLink plans to use the net proceeds from the offering, which is expected to be completed on Jan. 24, 2020, to repay a portion of the indebtedness under its existing 2017 senior secured credit facilities.

On Nov. 6, the company reported Q3 net income of $302 million or $0.28 per share versus $272 million or $0.25 per share last year. Adjusted earnings totaled $328 million or $0.31 per share for the period.

Analysts polled by Thomson Reuters expected earnings of $0.33 per share. Analysts' estimate typically exclude certain special items.

Revenue for the quarter fell 3.6% to $5.61 billion from $5.82 billion last year.

The company is slated to release its Q4 results on Feb. 12.