NYSE$LUMN

Lumen Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Lumen's revenue trajectory improved and Quantum Fiber locations enabled accelerated in Q2 2022. The divestiture of the Latin America business was completed and the divestiture of the 20-state ILEC business is expected to close early in the fourth quarter of this year.

Lumen Technologies reported a decrease in total revenue and net income for Q2 2022 compared to Q2 2021. Total revenue was $4.612 billion, and net income was $344 million. The company reiterated its full-year 2022 financial outlook measures and completed the divestiture of its Latin American business.

  • Reported Net Income of $344 million for the second quarter 2022, compared to reported Net Income of $506 million for the second quarter 2021
  • Diluted EPS of $0.34 for the second quarter 2022, compared to $0.46 per share for the second quarter 2021. Excluding Special Items, Diluted EPS of $0.35 per share for the second quarter 2022, compared to $0.48 per share for the second quarter 2021
  • Generated Adjusted EBITDA of $1.811 billion for the second quarter 2022, compared to $2.109 billion for the second quarter 2021, excluding Special Items of $47 million and $20 million, respectively
  • Generated Free Cash Flow of $668 million for the second quarter 2022, compared to $1.044 billion for the second quarter 2021, excluding cash paid for Special Items of $33 million and $51 million, respectively

Headline financials

Total Revenue

$4.61B

Previous: $4.92B-6.3%
EPS (adj)

$0.35

Previous: $0.48-27.1%
Free Cash Flow

$344M

Previous: $506M-32.0%
Net Income

$344M

Previous: $506M-32.0%
Operating Income

$912M

Previous: $1.01B-9.3%
Gross Profit

$2.55B

Previous: $2.81B-9.1%
Cash & Equivalents

$360M

Previous: $935M-61.5%
Total Assets

$57.7B

Previous: $58.9B-2.2%
Stock-Based Comp

$25M

Previous: $42M-40.5%

Revenue & EPS history

Lumen · Revenue · Quarterly

$4.61B

Q2 2022-6.3%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Lumen · $4.61B total across 5 segments · Q2 2022

  • Mass Markets Segment Revenue
    $1.2B-14.7%
  • International and Other
    $996M-1.5%
  • Wholesale
    $910M+0.6%
  • Large Enterprise
    $884M-6.5%
  • Mid-Market Enterprise
    $626M-5.3%

Forward guidance

The company reiterated its full-year 2022 financial outlook measures:

Tailwinds

  • Adjusted EBITDA: $6.9 to $7.1 billion
  • Free Cash Flow: $2.0 to $2.2 billion
  • Net Cash Interest: $1.3 to $1.4 billion
  • GAAP Interest Expense: $1.350 billion
  • Dividends: $1.00 per share

Headwinds

  • Capital Expenditures: $3.2 to $3.4 billion
  • Depreciation and Amortization: $3.2 to $3.4 billion
  • Stock-based Compensation Expense: ~$150 million
  • Cash Income Taxes: ~$100 million
  • Full Year Effective Income Tax Rate: ~26%

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 Q2 2022

Historical avgQ2 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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