NYSE$LUMN
Lumen Technologies Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Lumen's financial performance was marked by a net loss, impacted by a significant goodwill impairment charge, while the company focused on growth initiatives, particularly in its Business Grow product revenue and Quantum Fiber deployments.
Lumen Technologies reported a mixed second quarter, with increased Business Grow product revenue but a significant net loss due to a non-cash goodwill impairment charge. The company progressed on its growth strategy, expanding fiber deployments, but faced challenges in overall revenue and cash flow.
- Business Grow product revenue increased to $1.138 billion, showing improvement from both the previous quarter and the prior year when considering divested businesses.
- Approximately 130,000 fiber locations were deployed during the quarter, accelerating Quantum Fiber-enabled location pacing.
- A non-cash goodwill impairment charge of $8.793 billion led to a reported net loss of $(8.736) billion.
- Negative free cash flow of $(896) million was reported, compared to positive $668 million in the prior year, impacted by cash tax payments related to divestitures.
Headline financials
Revenue & EPS history
Lumen · Revenue · Quarterly
$3.66B
Revenue by segment
Lumen · $3.66B total across 5 segments · Q2 2023
- Large Enterprise$1.18B+33.4%32.2%
- Wholesale$797M-12.4%21.8%
- Mass Markets Segment Revenue$764M-36.1%20.9%
- Mid-Market Enterprise$507M-19.0%13.8%
- Public Sector$414M—11.3%
Forward guidance
Lumen updated its full-year 2023 financial outlook, maintaining its Adjusted EBITDA and Free Cash Flow guidance while anticipating specific figures for net cash interest, GAAP interest expense, capital expenditures, depreciation and amortization, stock-based compensation expense, cash income taxes, and the full-year effective income tax rate.
Tailwinds
- Adjusted EBITDA is projected to be in the range of $4.6 to $4.8 billion.
- Net Cash Interest is expected to be between $1.1 to $1.2 billion.
- Depreciation and Amortization is estimated to be $2.9 to $3.1 billion.
- The full-year effective income tax rate is projected to be approximately 26%.
- GAAP Interest Expense is expected to be $1.200 billion.
Headwinds
- Free Cash Flow is projected to be in the range of $0 to $200 million.
- Capital Expenditures are expected to be $2.9 to $3.1 billion.
- Stock-based Compensation Expense is anticipated to be approximately $65 million.
- Cash Income Taxes are projected to be approximately $300 to $400 million.
- The outlook excludes the effects of Special Items, goodwill impairments, and unforeseen events.
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 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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