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Lumen (LUMN) Q1 Earnings Miss Estimates, Revenues Down Y/Y
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Lumen Technologies, Inc (LUMN - Free Report) reported an adjusted loss (excluding special items) of 4 cents per share for first-quarter 2024. In the prior-year quarter, the company reported adjusted earnings per share of 10 cents. The bottom line missed the Zacks Consensus Estimate of a loss of 3 cents.
Quarterly total revenues were $3.290 billion, down 12% year over year on a reported basis. Revenues for the year-ago quarter include $139 million from the EMEA business divested, which will not recur in periods following the divestiture. Also, it missed the Zacks Consensus Estimate by 3%.
Lumen also highlighted that it had completed its TSA transactions with a broad group of creditors. This will significantly strengthen its balance sheet and address more than $15 billion of debt and commitments.
Lumen Technologies, Inc. Price, Consensus and EPS Surprise
Lumen has adopted a new reporting structure that has collapsed International and Global Accounts or IGAM and large enterprises into the large enterprise channel. The company has moved the public sector to its separate channel.
By segment, Business revenues fell 12.7% to $2.591 billion while revenues from Large Enterprise plunged 5.8% to $858 million.
Mid-Market Enterprise revenues declined 7.1% to $486 million.
Public Sector revenues were down 2.8% to $420 million, driven by weakness in nurture and harvest segment revenues.
North American Enterprise Channels’ revenues were down 5.5% to $1.764 billion.
Revenues in Wholesale decreased 11.3% to $730 million. Revenues from Mass Markets were down 9.2% year over year to $699 million.
Lumen anticipates witnessing healthy momentum in the Quantum business in the upcoming quarters. The company added 36,000 Quantum fiber subscribers, taking the count to 952,000 in the reported quarter.
In the first quarter, total enablements were approximately 129,000. As of Mar 31, 2024, total enabled locations in the retained states stood at 3.8 million. The company is targeting to exceed 500,000 enabled locations in 2024.
Other Quarterly Details
Total operating expenses decreased 3% year over year to $3,245 million.
Operating income was $45 million compared with $390 million in the year-ago quarter. Adjusted EBITDA (excluding special items) slipped to $977 million from $1.251 billion for respective margins of 29.7% and 33.5%.
Cash Flow & Liquidity
In the first quarter, Lumen generated $1,102 million of net cash from operations compared with $595 million in the prior-year quarter.
Free cash flow (excluding cash special items) for the first quarter was $389 million compared with free cash outflow of $45 million in the prior-year quarter.
As of Mar 31, 2024, the company had $1.580 billion in cash and cash equivalents with $18,591 million of long-term debt compared with the respective figures of $2.234 million and $19,831 million as of Dec 31, 2023.
2024 View
For 2024, Lumen expects adjusted EBITDA in the range of $4.1-$4.3 billion. Free cash flow is projected to be between $100 million and $300 million.
Capital expenditures are estimated to be between $2.7 billion and $2.9 billion.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 9.9% in the past 60 days to $3.89. BMI’s long-term earnings growth rate is 12.3%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.7%. BMI shares have risen 35% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34. PINS’s long-term earnings growth rate is 20.1%.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13.3% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.4% in the past 60 days to $7.49. ANET’s long-term earnings growth rate is 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 13.3%. Shares of ANET have gained 61.2% in the past year.
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Lumen (LUMN) Q1 Earnings Miss Estimates, Revenues Down Y/Y
Lumen Technologies, Inc (LUMN - Free Report) reported an adjusted loss (excluding special items) of 4 cents per share for first-quarter 2024. In the prior-year quarter, the company reported adjusted earnings per share of 10 cents. The bottom line missed the Zacks Consensus Estimate of a loss of 3 cents.
Quarterly total revenues were $3.290 billion, down 12% year over year on a reported basis. Revenues for the year-ago quarter include $139 million from the EMEA business divested, which will not recur in periods following the divestiture. Also, it missed the Zacks Consensus Estimate by 3%.
Lumen also highlighted that it had completed its TSA transactions with a broad group of creditors. This will significantly strengthen its balance sheet and address more than $15 billion of debt and commitments.
Lumen Technologies, Inc. Price, Consensus and EPS Surprise
Lumen Technologies, Inc. price-consensus-eps-surprise-chart | Lumen Technologies, Inc. Quote
Segment Performance
Lumen has adopted a new reporting structure that has collapsed International and Global Accounts or IGAM and large enterprises into the large enterprise channel. The company has moved the public sector to its separate channel.
By segment, Business revenues fell 12.7% to $2.591 billion while revenues from Large Enterprise plunged 5.8% to $858 million.
Mid-Market Enterprise revenues declined 7.1% to $486 million.
Public Sector revenues were down 2.8% to $420 million, driven by weakness in nurture and harvest segment revenues.
North American Enterprise Channels’ revenues were down 5.5% to $1.764 billion.
Revenues in Wholesale decreased 11.3% to $730 million. Revenues from Mass Markets were down 9.2% year over year to $699 million.
Lumen anticipates witnessing healthy momentum in the Quantum business in the upcoming quarters. The company added 36,000 Quantum fiber subscribers, taking the count to 952,000 in the reported quarter.
In the first quarter, total enablements were approximately 129,000. As of Mar 31, 2024, total enabled locations in the retained states stood at 3.8 million. The company is targeting to exceed 500,000 enabled locations in 2024.
Other Quarterly Details
Total operating expenses decreased 3% year over year to $3,245 million.
Operating income was $45 million compared with $390 million in the year-ago quarter. Adjusted EBITDA (excluding special items) slipped to $977 million from $1.251 billion for respective margins of 29.7% and 33.5%.
Cash Flow & Liquidity
In the first quarter, Lumen generated $1,102 million of net cash from operations compared with $595 million in the prior-year quarter.
Free cash flow (excluding cash special items) for the first quarter was $389 million compared with free cash outflow of $45 million in the prior-year quarter.
As of Mar 31, 2024, the company had $1.580 billion in cash and cash equivalents with $18,591 million of long-term debt compared with the respective figures of $2.234 million and $19,831 million as of Dec 31, 2023.
2024 View
For 2024, Lumen expects adjusted EBITDA in the range of $4.1-$4.3 billion. Free cash flow is projected to be between $100 million and $300 million.
Capital expenditures are estimated to be between $2.7 billion and $2.9 billion.
Zacks Rank and Stocks to Consider
Lumen currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Badger Meter (BMI - Free Report) , Pinterest (PINS - Free Report) and Arista Networks (ANET - Free Report) . Each stock presently sports 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 Badger Meter’s 2024 EPS has increased 9.9% in the past 60 days to $3.89. BMI’s long-term earnings growth rate is 12.3%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.7%. BMI shares have risen 35% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34. PINS’s long-term earnings growth rate is 20.1%.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13.3% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.4% in the past 60 days to $7.49. ANET’s long-term earnings growth rate is 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 13.3%. Shares of ANET have gained 61.2% in the past year.