NYSE$LUMN
Lumen Technologies Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Lumen's first quarter results declined year-over-year due to divestitures and the end of the CAF Phase II program, but showed positive leading indicators with strong growth products revenue performance and Quantum Fiber build progress.
Lumen Technologies reported first quarter 2023 results, with a focus on its turnaround strategy. The company saw positive leading indicators in growth products revenue and Quantum Fiber build progress. Net income was $511 million, and diluted earnings per share were $0.52. The company updated its full-year 2023 financial outlook, maintaining Adjusted EBITDA guidance of $4.6 to $4.8 billion and Free Cash Flow guidance of $0 to $200 million.
- Business product Grow revenue increased to $1.128 billion, up from $1.091 billion in Q4 2022.
- Quantum Fiber deployment reached approximately 120,000 fiber locations.
- Principal debt balance reduced by $620 million through exchange offers for Lumen senior notes.
- Generated negative Free Cash Flow of $(75) million.
Headline financials
Revenue & EPS history
Lumen · Revenue · Quarterly
$3.74B
Revenue by segment
Lumen · $6.69B total across 6 segments · Q1 2023
- Business Segment Revenue$2.96B-13.1%44.2%
- Large Enterprise$1.19B-17.2%17.8%
- Wholesale$817M-9.9%12.2%
- Mass Markets Segment Revenue$782M-38.7%11.7%
- Mid-Market Enterprise$515M-10.1%7.7%
- Public Sector$430M-10.2%6.4%
Forward guidance
Lumen updated its full-year 2023 financial outlook, maintaining Adjusted EBITDA guidance of $4.6 to $4.8 billion and Free Cash Flow guidance of $0 to $200 million.
Tailwinds
- Adjusted EBITDA: $4.6 to $4.8 billion
- Free Cash Flow: $0 to $200 million
- Net Cash Interest: $1.1 to $1.2 billion
- GAAP Interest Expense: $1.200 billion
- Depreciation and Amortization: $2.9 to $3.1 billion
Headwinds
- Capital Expenditures: $2.9 to $3.1 billion
- Stock-based Compensation Expense: ~$125 million
- Cash Income Taxes: ~$300 to $400 million
- Full Year Effective Income Tax Rate: ~26%
- Excludes approximately $1 billion impact of taxes related to our divestitures completed on August 1, 2022 and October 3, 2022.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
+0.5%
Avg return
Earnings day
+1.8%
Avg return
5 days after
-2.0%
Avg return
30 days after
49%
33 / 68 earnings
Positive
+156.0%
Q2 2024
Best reaction
-34.2%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +4.6% | -9.6% | -3.6% | |
| Q4 2025 | -21.6% | -8.2% | -21.7% | |
| Q3 2025 | +14.2% | +5.0% | -21.6% | |
| Q1 2025 | +6.9% | +20.2% | +11.4% | |
| Q4 2024 | -1.4% | -1.2% | +5.2% | |
| Q3 2024 | +20.6% | +28.2% | -13.5% | |
| Q2 2024 | +156.0% | +115.1% | +112.4% | |
| Q1 2024 | -0.8% | +8.2% | +4.9% | |
| Q4 2023 | +12.4% | +17.8% | +34.1% | |
| Q3 2023 | -34.2% | -24.8% | -12.1% | |
| Q2 2023 | +0.0% | -7.3% | -11.2% | |
| Q1 2023 | -3.8% | -4.2% | -18.1% | |
| Q4 2022 | -21.6% | -21.4% | -42.9% | |
| Q3 2022 | -21.9% | -18.7% | -25.8% | |
| Q2 2022 | +0.6% | +1.9% | -8.5% | |
| Q1 2022 | +3.2% | +7.1% | +11.8% | |
| Q4 2021 | -14.6% | -21.8% | -15.8% | |
| Q3 2021 | +12.2% | +14.6% | +1.1% | |
| Q2 2021 | -7.3% | -6.3% | -1.5% | |
| Q1 2021 | +2.3% | +8.8% | +12.3% | |
| Q4 2020 | -8.4% | -6.2% | +11.7% | |
| Q3 2020 | +1.9% | +1.5% | +15.9% | |
| Q2 2020 | +6.9% | +9.9% | +8.9% | |
| Q1 2020 | -4.9% | -3.4% | +8.0% | |
| Q4 2019 | -7.0% | -6.9% | -32.2% | |
| Q3 2019 | +8.9% | +10.2% | +3.6% | |
| Q2 2019 | -10.5% | -6.3% | -1.3% | |
| Q1 2019 | -4.8% | -7.9% | -7.6% | |
| Q4 2018 | -12.2% | -5.6% | -16.9% | |
| Q3 2018 | -11.9% | -12.5% | -18.6% | |
| Q2 2018 | +12.5% | +17.4% | +17.7% | |
| Q1 2018 | +7.0% | +6.1% | -2.6% | |
| Q4 2017 | +11.2% | +10.0% | -0.5% | |
| Q3 2017 | -4.6% | -5.5% | -9.6% | |
| Q2 2017 | -3.9% | -4.4% | -14.2% | |
| Q1 2017 | -8.5% | -4.4% | -0.3% | |
| Q4 2016 | -1.8% | -1.0% | -7.0% | |
| Q3 2016 | -17.8% | -24.2% | -22.6% | |
| Q2 2016 | -1.1% | -1.0% | -8.7% | |
| Q1 2016 | -7.8% | — | — | |
| Q4 2015 | +10.0% | — | — | |
| Q3 2015 | +0.8% | — | — | |
| Q2 2015 | -1.8% | — | — | |
| Q1 2015 | -4.1% | — | — | |
| Q4 2014 | -2.2% | — | — | |
| Q3 2014 | -6.3% | — | — | |
| Q2 2014 | -0.9% | — | — | |
| Q1 2014 | +7.0% | — | — | |
| Q4 2013 | +1.5% | — | — | |
| Q3 2013 | -4.7% | — | — | |
| Q2 2013 | -5.0% | — | — | |
| Q1 2013 | +0.5% | — | — | |
| Q4 2012 | -22.7% | — | — | |
| Q3 2012 | +1.9% | — | — | |
| Q2 2012 | +1.6% | — | — | |
| Q1 2012 | +0.2% | — | — | |
| Q4 2010 | +0.6% | — | — | |
| Q4 2011 | +0.6% | — | — | |
| Q3 2011 | +3.6% | — | — | |
| Q2 2011 | +4.9% | — | — | |
| Q1 2010 | +0.8% | — | — | |
| Q1 2011 | -1.7% | — | — | |
| Q4 2008 | +0.2% | — | — | |
| Q3 2010 | -0.7% | — | — | |
| Q3 2009 | -0.7% | — | — | |
| Q4 2009 | +0.2% | — | — | |
| Q2 2010 | +0.2% | — | — | |
| Q2 2009 | +0.2% | — | — |
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