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Lumen's (LUMN) Sale of ILEC to Brightspeed Approved by FCC
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Lumen Technologies’ (LUMN - Free Report) sale of incumbent local exchange carrier (ILEC) business to Brightspeed has been approved by the Federal Communications Commission ("FCC").
The sale of the company’s ILEC operations in 20 states to Brightspeed was previously announced on Aug 3, 2021. According to the contract, Lumen will retain its national fiber routes and associated networks as well as its ILEC operations in 16 states.
The FCC has now approved the transaction with all the necessary final regulatory clearances. The sale is expected to close by the fourth quarter, subject to other customary closing conditions.
Brightspeed plans to bridge the digital divide by making significant investments in expanded fiber optics networks to provide high bandwidth connectivity to all the users in 20 states.
Over the next five years, the company intends to build fiber infrastructure that will reach up to three million homes and companies, including many rural and suburban areas where fiber network has not been introduced.
In August 2022, Lumen announced the sale of its Latin American operations “Cirion” to Stonepeak for $2.7 billion cash. The transaction will allow the company to focus its capital on a strategic mix of assets that will enable long-term growth and debt reduction.
Headquartered in Monroe, LA, Lumen offers a wide array of integrated services like wholesale network access, high-speed Internet access, managed hosting and colocation services etc., to its business and residential customers.
The company continues to invest heavily in Quantum fiber business and its Enterprise business. The company added 28,000 Quantum Fiber subscribers taking the count to 858,000 quantum fiber subscribers in the last-reported quarter.
Recently, the company announced an investment in edge computing to expand its platform by offering Lumen Edge Virtual Machine (VM) to its customers. Lumen Edge VM provides users with low latency by leveraging the Lumen fiber network so that customers can work seamlessly on next-generation applications.
The company reported adjusted earnings (excluding special items) of 35 cents per share in second-quarter 2022 compared with 48 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 23.9%.
Quarterly total revenues dropped 6.3% year over year to $4,612 million, owing to the conclusion of the CAF II program. The top line marginally beat the consensus estimate by 0.3%.
Lumen currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 10.7% compared with the industry’s fall of 59.3% in the past year.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 15.6% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 8.5% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.03 per share, increasing 9.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 34.9% in the past year.
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Lumen's (LUMN) Sale of ILEC to Brightspeed Approved by FCC
Lumen Technologies’ (LUMN - Free Report) sale of incumbent local exchange carrier (ILEC) business to Brightspeed has been approved by the Federal Communications Commission ("FCC").
The sale of the company’s ILEC operations in 20 states to Brightspeed was previously announced on Aug 3, 2021. According to the contract, Lumen will retain its national fiber routes and associated networks as well as its ILEC operations in 16 states.
Lumen Technologies, Inc. Price and Consensus
Lumen Technologies, Inc. price-consensus-chart | Lumen Technologies, Inc. Quote
The FCC has now approved the transaction with all the necessary final regulatory clearances. The sale is expected to close by the fourth quarter, subject to other customary closing conditions.
Brightspeed plans to bridge the digital divide by making significant investments in expanded fiber optics networks to provide high bandwidth connectivity to all the users in 20 states.
Over the next five years, the company intends to build fiber infrastructure that will reach up to three million homes and companies, including many rural and suburban areas where fiber network has not been introduced.
In August 2022, Lumen announced the sale of its Latin American operations “Cirion” to Stonepeak for $2.7 billion cash. The transaction will allow the company to focus its capital on a strategic mix of assets that will enable long-term growth and debt reduction.
Headquartered in Monroe, LA, Lumen offers a wide array of integrated services like wholesale network access, high-speed Internet access, managed hosting and colocation services etc., to its business and residential customers.
The company continues to invest heavily in Quantum fiber business and its Enterprise business. The company added 28,000 Quantum Fiber subscribers taking the count to 858,000 quantum fiber subscribers in the last-reported quarter.
Recently, the company announced an investment in edge computing to expand its platform by offering Lumen Edge Virtual Machine (VM) to its customers. Lumen Edge VM provides users with low latency by leveraging the Lumen fiber network so that customers can work seamlessly on next-generation applications.
The company reported adjusted earnings (excluding special items) of 35 cents per share in second-quarter 2022 compared with 48 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 23.9%.
Quarterly total revenues dropped 6.3% year over year to $4,612 million, owing to the conclusion of the CAF II program. The top line marginally beat the consensus estimate by 0.3%.
Lumen currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 10.7% compared with the industry’s fall of 59.3% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Cadence Design Systems, Badger Meter and Arista Networks each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 15.6% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 8.5% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.03 per share, increasing 9.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 34.9% in the past year.