CenturyLink stock was falling on Monday following news that it is delaying its annual 10-K.
The delay of CenturyLink’s (NYSE:CTL) 10-k filing with the U.S. Securities and Exchange Commission was revealed with the filing of a FORM 12b-25. In the filing, the company says that it can not file its 10-K on time “without unreasonable effort or expense.”
Here’s what CenturyLink has to say about the 10-K delay.
“The principal reason for the delay is that recently identified material weaknesses in internal controls over the Company’s revenue recording processes and the procedures for measuring fair value of assets and liabilities assumed in connection with the Level 3 Communications, Inc. acquisition have created the need to conduct additional review and testing with respect to those processes prior to finalizing the assessment and the audits of the effectiveness of internal control over financial reporting as of December 31, 2018 and of the Company’s financial statements as of and for the year ended December 31, 2018.”
A delay to its 10-K filing is bad for CenturyLink stock. However, the company does note that it is at least expecting to have the 10-K filing ready within the grace period that it is allowed. It also says that it isn’t expecting any material changes to the financial results from its earnings report that was released on Feb. 13, 2019.
CTL stock was down 9% as of Monday afternoon and is down 16% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.