Company Performance - Lumen reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.20, but worse than a loss of $0.09 per share a year ago, representing an earnings surprise of 35% [1] - The company posted revenues of $3.22 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.58%, but down from $3.64 billion in the same quarter last year [2] - Over the last four quarters, Lumen has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Lumen shares have increased approximately 308.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 19.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.22 on revenues of $3.16 billion, and for the current fiscal year, it is -$0.59 on revenues of $12.92 billion [7] Industry Outlook - The Technology Services industry, to which Lumen belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Lumen's stock may be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

| --- | --- | |-------|-------| | | | | | | LUMEN® Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as "estimates," "expects," "anticipates," "believes," "plans," "intends," "will," and similar expressions are forward-looking statements as defined by the federal securities laws, and are subject to the "safe harbor" protections thereunder. These forward-looking statements a ...

Financial Performance - Operating revenue for Q3 2024 was $3.221 billion, a decrease of 12% compared to $3.641 billion in Q3 2023[210] - The net loss for Q3 2024 was $148 million, compared to a net loss of $78 million in Q3 2023[210] - The Business Segment revenue decreased by 13% to $2.536 billion in Q3 2024 from $2.905 billion in Q3 2023[214] - The Mass Markets Segment revenue decreased by 7% to $685 million in Q3 2024 from $736 million in Q3 2023[214] - Revenue from the International and Other sales channel decreased by 65% to $93 million in Q3 2024 from $264 million in Q3 2023[214] - Total operating revenue for the three months ended September 30, 2024, was $3.221 billion, a decrease of 11.5% compared to $3.641 billion for the same period in 2023[240] - Business segment revenue decreased by $369 million (13%) for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to the sale of the EMEA business[244] - Adjusted EBITDA for the three months ended September 30, 2024, was $843 million, down 15% from $994 million in the same period in 2023[242] - Mass Markets segment revenue decreased by $51 million (7%) for the three months ended September 30, 2024, compared to the same period in 2023[249] Expenses and Cost Management - Total operating expenses decreased by 9% to $3,095 million for the three months ended September 30, 2024, compared to $3,418 million in 2023[218] - Cost of services and products decreased by $158 million (9%) for the three months ended September 30, 2024, primarily due to the sale of the EMEA business[220] - Selling, general and administrative expenses decreased by $95 million (12%) for the three months ended September 30, 2024, attributed to workforce reductions and the sale of the EMEA business[222] - Depreciation and amortization expenses decreased by 6% to $707 million for the three months ended September 30, 2024, compared to $755 million in 2023[224] - Total operating expenses for the nine months ended September 30, 2024, decreased by 50% to $9,473 million from $18,848 million in 2023[219] Goodwill and Impairment - The company recognized nearly $14.0 billion in goodwill impairment charges in 2022 and 2023 due to various pressures on financial performance[195] - Goodwill impairment charge of $8.8 billion was recorded in the second quarter of 2023 due to a decline in share price[229] Cash Flow and Capital Expenditures - Cash and cash equivalents as of September 30, 2024, were $2.6 billion, with $738 million of borrowing capacity available under revolving credit facilities[257] - Capital expenditures for the full year 2024 are projected to be between $3.1 billion and $3.3 billion[259] - Net cash provided by operating activities increased by $2.3 billion to $3.645 billion for the nine months ended September 30, 2024, compared to $1.376 billion in the same period of 2023[295] - Net cash used in investing activities decreased by $233 million, totaling $1.999 billion for the nine months ended September 30, 2024, compared to $2.232 billion in 2023[297] - Net cash used in financing activities increased by $1.1 billion, reaching $1.241 billion for the nine months ended September 30, 2024, compared to $101 million in 2023[298] Debt and Financing - As of September 30, 2024, Lumen had $13.7 billion in outstanding consolidated secured indebtedness and $5.2 billion in unsecured indebtedness[271] - The company issued approximately $438 million in new 10.000% Secured Notes due 2032, reducing consolidated indebtedness by approximately $60 million[269] - Lumen received $729 million in federal income tax cash refund in January 2024, which will influence future tax payments[279] - The company expects to pay $193 million in post-retirement benefits for the full year 2024[284] Market and Competitive Landscape - The company anticipates increased competition for broadband customers in newly-served areas due to $65 billion in federal funding aimed at improving broadband access and affordability[290] - The FCC adopted "net neutrality" rules on April 25, 2024, which may impact operational, legal, and compliance costs if upheld against legal challenges[291] Operational Strategies - The company plans to continue investing in new technologies and automated processes to improve customer experience and reduce operating expenses[202] - The company aims to optimize pricing and rationalize products across its portfolio to mitigate revenue declines[212] - The company experienced a decline in revenues from voice and other legacy products, necessitating a focus on increasing network capacity and promoting integrated services[212] Other Considerations - The company has a stock repurchase program authorized for up to $1.3 billion, which expires on November 2, 2024[281] - Lumen's expected annual long-term rate of return on pension plan assets for 2024 is 6.5%[286] - The company continues to evaluate strategies to mitigate risks from fluctuations in currency exchange rates, which could impact operating results[308] - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the third quarter of 2024[313]

Financial Performance - Reported Net Loss of $(148) million for Q3 2024, compared to $(78) million for Q3 2023, representing a 90% increase in net loss year-over-year [4] - Adjusted EBITDA for Q3 2024 was $899 million, down 14% from $1.049 billion in Q3 2023 [4] - Total Revenue for Q3 2024 was $3.221 billion, a decrease of 12% compared to $3.641 billion in Q3 2023 [6] - Operating Income for Q3 2024 was $126 million, a decrease of 43% from $223 million in Q3 2023 [25] - Basic Loss Per Share for Q3 2024 was $(0.15), an increase of 88% compared to $(0.08) in Q3 2023 [25] - Total Operating Expenses decreased by 9% to $3.095 billion in Q3 2024 from $3.418 billion in Q3 2023 [25] - Adjusted EBITDA and Adjusted EBITDA Margin metrics are used to evaluate profitability and operating performance, although specific figures were not provided in the documents [36][37] Cash Flow and Liquidity - Free Cash Flow for Q3 2024 was $1.182 billion, significantly up from $38 million in Q3 2023 [6] - The company generated Net Cash Provided by Operating Activities of $2.032 billion in Q3 2024, up from $881 million in Q3 2023 [6] - Free Cash Flow, excluding Special Items, was $1.198 billion in Q3 2024, significantly up from $43 million in Q3 2023 [12] - Free Cash Flow guidance for 2024 has been raised to a range of $1.2 billion to $1.4 billion, up from the previous range of $1.0 billion to $1.2 billion [14] - Lumen Technologies reported a net cash provided by operating activities of $2,032 million for Q3 2024, compared to $881 million in Q3 2023 [48] - The company achieved a Free Cash Flow of $1,182 million in Q3 2024, significantly up from $38 million in Q3 2023 [48] Revenue Breakdown - North America Business Revenue decreased by 7% year-over-year to $2.443 billion in Q3 2024 from $2.641 billion in Q3 2023 [6] - International and Other revenue dropped 65% year-over-year to $93 million in Q3 2024 from $264 million in Q3 2023 [10] - Total Revenue for Q3 2024 was $3.221 billion, a decrease of 12% compared to $3.641 billion in Q3 2023 [11] - Total revenue for Q3 2024 was $3,221 million, a decrease from $3,641 million in Q3 2023 [50] Debt and Equity - Long-term debt decreased from $19,831 million to $18,142 million, reflecting the company's efforts to manage its debt levels [27] - The total stockholders' equity decreased from $417 million to $342 million, indicating a decline in the company's net worth [27] - Total current liabilities rose from $3,534 million to $3,940 million, primarily due to an increase in current maturities of long-term debt from $157 million to $415 million [27] Subscriber Growth - Fiber broadband subscribers grew to 1,035 thousand in Q3 2024, up from 992 thousand in Q2 2024 and 896 thousand in Q3 2023 [30] - The company continues to see sales momentum in its Quantum Fiber business, achieving record net subscription adds [2] Special Items and Costs - Special items impacting Adjusted EBITDA totaled $56 million in Q3 2024, compared to $55 million in Q3 2023 [46] - The company incurred transaction and separation costs of $41 million in Q3 2024, up from $28 million in Q3 2023 [46] - Severance costs for Q3 2024 were $12 million, compared to $8 million in Q3 2023 [46] Outlook - The updated full-year 2024 financial outlook for Adjusted EBITDA is projected to be between $3.9 billion and $4.0 billion, unchanged from the previous outlook [14] - The company expects Adjusted EBITDA for the twelve months ending December 31, 2024, to be in the range of $3,900 million to $4,000 million [53] - Lumen anticipates Free Cash Flow for the twelve months ending December 31, 2024, to be between $1,200 million and $1,400 million [53] Tax and Cash Position - The company received an approximately $700 million tax refund during Q1 2024 [14] - As of September 30, 2024, Lumen had cash and cash equivalents of $2.640 billion [12] - Cash and cash equivalents increased from $2,234 million at the end of 2023 to $2,640 million by September 30, 2024 [27] Other Financial Metrics - Capital Expenditures for Q3 2024 were $850 million, a slight increase from $843 million in Q3 2023 [10] - The company reported a change in deferred revenue of $1,572 million for the nine months ended September 30, 2024, compared to $161 million in the same period of 2023 [28] - Net loss for the nine months ended September 30, 2024, was $140 million, a significant improvement compared to a net loss of $8,303 million in the same period of 2023 [28] - Total assets decreased slightly from $34,018 million on December 31, 2023, to $33,989 million on September 30, 2024 [27]

DENVER, Nov. 5, 2024 /PRNewswire/ -- Lumen Technologies, Inc. (NYSE: LUMN) reported results for the third quarter ended September 30, 2024.Big Tech is Choosing Lumen to Build the Backbone for the AI Economy Continued operational progress and sales momentum across our growth portfolio. Record quarter for net subscription adds in Quantum Fiber business. Delivered new Lumen Private Connectivity Fabric (or PCF) sales since our last earnings report, which provides additional liquidity and flexibility to continue ...

Google Cloud underpins Lumen® Digital Twin technology, providing proactive insights across the Lumen network Google Cloud's Vertex AI platform enables new AI-powered applications to assist Lumen technicians and customer support teams Lumen Private Connectivity Fabric℠ will expand Google's network to support demand growth for Google Cloud's products and AI innovations DENVER, Nov. 5, 2024 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) announced a partnership with Google Cloud that is accelerating Lumen's ...

Lumen Technologies, Inc (LUMN) is scheduled to report third-quarter 2024 results on Nov. 5.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate for total revenues is pegged at $3.2 billion, indicating a fall of 12% from a year ago. The consensus estimate for earnings is currently pegged at a loss of 5 cents per share. In the year-ago quarter, LUMN reported a loss of 9 cents per share.The company missed the Zacks Consensus Estimate in three of the last four q ...

This little AI software company needs to prove it can grow in the shadow of its bigger competitors. Lumen Technologies was one of the greatest comeback stories of 2024. The struggling telecom company's stock had dropped below $1 this June as investors fretted over the slow death of its business wireline segment. But it skyrocketed back to about $6 over the past four months as it secured several major AI deals. Microsoft mainly saved Lumen, which awarded it an artificial intelligence (AI) connectivity contra ...

Lumen Technologies, Inc. (LUMN) has partnered with Meta Platforms, Inc. (META) to elevate the latter’s network capabilities. The expanded network will deliver a dedicated interconnection for Meta's cutting-edge infrastructure.Lumen’s Private Connectivity Fabric (PCF) is designed to supply the network capacity needed for artificial intelligence (AI) development. This initiative includes exclusive access to current and new fiber routes connecting data centers. Lumen highlighted that it will help Meta deliver ...

Lumen stock got off to a red-hot start thanks to AI news today, but it hasn't held on to those early gains.Lumen Technologies (LUMN -2.15%) stock is surging in today's trading. The telecommunications company's share price was up down 2.5% as of 2:30 p.m. ET, after having been up as much as 15.4% earlier in the day's trading.Lumen stock is making big gains following an announcement that the company has signed a new deal with Meta Platforms (META -0.63%) to provide network infrastructure and services. Through ...