Lumen Technologies Reports Q3 2024 Earnings amid Transition

In a recent report, Lumen Technologies discussed its Q3 2024 earnings, highlighting ongoing transformation efforts and the impact of legacy revenue declines. The company also mentioned significant sales growth in its core segments, casting a positive light on future cash flow expectations.

Date: 06-11-2024

AI Rating: 6

Earnings Per Share (EPS): The report did not discuss EPS figures.

Revenue Growth: Lumen reported a year-over-year revenue decline of 11.5% to $3.221 billion, primarily attributed to divestitures and the sale of its CDN business. However, there was notable sales performance with large enterprise and midmarket sales up nearly 14%, indicating strong sales growth in specific segments despite overall revenue declines.

Net Income: Net income figures were not provided in the report.

Profit Margins (Gross, Operating, Net): Adjusted EBITDA was reported at $899 million, reflecting a 27.9% margin, which is a decline from the previous year's figures due to legacy revenue declines and high operating expenses.

Free Cash Flow (FCF): The report highlighted a positive free cash flow of $1.2 billion, bolstered by recently secured cash from PCF sales, providing financial flexibility for investments and debt reduction.

Return on Equity (ROE): The report did not mention ROE.

Lumen Technologies is undergoing a significant transformation to shift from traditional telecom services to a digital network services company, focusing on AI and cloud integration. The substantial investments and restructuring associated with this transition may weigh on near-term results but are expected to position the company for future growth. The reported increase in IP sales and critical partnerships with big tech firms for AI-related projects could provide a considerable growth trajectory moving forward.

Stocks: LUMN