NYSE$LUMN

Lumen Technologies Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Lumen's Q2 2024 performance reflected a net loss, decreased revenue, and strategic advancements in key areas.

Lumen Technologies reported a net loss of $(49) million for Q2 2024, a significant improvement compared to the $(8.736) billion net loss in Q2 2023, which included a non-cash goodwill impairment charge. Total revenue decreased to $3.268 billion from $3.661 billion year-over-year. The company is focusing on driving commercial excellence, stabilizing the base, and innovating for growth, with a recent Microsoft partnership highlighting Lumen's position to capitalize on the demand for secure networks.

  • Reported a net loss of $(49) million, an improvement from the prior year's $(8.736) billion net loss.
  • Diluted loss per share was $(0.05), compared to $(8.88) in Q2 2023.
  • Generated Adjusted EBITDA of $1.011 billion, down from $1.229 billion in Q2 2023.
  • Free Cash Flow was negative $(156) million, compared to negative $(896) million in Q2 2023, excluding special items.

Headline financials

Total Revenue

$3.27B

Previous: $3.66B-10.7%
EPS

-$0.05

Previous: $0.10-150.0%
Adjusted EBITDA

$875M

Previous: $1.13B-22.4%
Adjusted EBITDA Excluding Special Items

$1.01B

Previous: $1.23B-17.7%
Adjusted EBITDA Margin

26.8%

No prior period
Adjusted EBITDA Margin Excluding Special Items

30.9%

No prior period
Unlevered Cash Flow

-$24M

No prior period
Unlevered Cash Flow Excluding Cash Special Items

$62M

No prior period
Net Income Excluding Special Items

-$124M

No prior period
Capital Expenditures

$753M

Previous: $796M-5.4%
Mass Markets Total Broadband Subscribers

2.7M

No prior period
Fiber Broadband Subscribers

992.0K

No prior period
Mass Markets Total Broadband Enabled Units

21.9M

No prior period
Net Cash Provided by Operating Activities

$511M

No prior period
Free Cash Flow Excluding Cash Special Items

-$156M

No prior period
Net (Loss) Income Margin

-1.5%

No prior period
Net Income (Loss) Margin Excluding Special Items

-3.8%

No prior period
Other Broadband Subscribers

1.7M

No prior period
Fiber Broadband Enabled Units

3.9M

No prior period
Other Broadband Enabled Units

18.0M

No prior period
Free Cash Flow

-$49M

Previous: -$8.74B+99.4%
Net Income

-$49M

Previous: -$8.74B+99.4%
Operating Income

$135M

Previous: -$8.42B+101.6%
Gross Profit

$1.62B

Previous: $1.92B-15.9%
Cash & Equivalents

$1.5B

Previous: $411M+263.7%
Total Assets

$32.9B

Previous: $36.2B-8.9%
Stock-Based Comp

-$3M

Previous: $9M-133.3%

Revenue & EPS history

Lumen · Revenue · Quarterly

$3.27B

Q2 2024-10.7%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Lumen · $3.64B total across 5 segments · Q3 2023

  • Large Enterprise
    $1.18B+40.0%
  • Wholesale
    $770M-14.6%
  • Mass Markets Segment Revenue
    $747M-36.3%
  • Mid-Market Enterprise
    $498M-19.4%
  • Public Sector
    $444M

Forward guidance

The Company updated its full-year 2024 financial outlook.

Tailwinds

  • Adjusted EBITDA is expected to be $3.9 to $4.0 billion.
  • Free Cash Flow is projected to be $1.0 to $1.2 billion.
  • Net Cash Interest is anticipated to be $1.15 to $1.25 billion.
  • Capital Expenditures are estimated to be $3.1 to $3.3 billion.
  • Cash Income Taxes/(Refund) are expected to be ($200) to ($300) million.

Headwinds

  • Outlook excludes the effects of Special Items.
  • Outlook excludes goodwill impairments.
  • Outlook excludes future changes in operating or capital allocation plans.
  • Outlook excludes unforeseen changes in regulation, laws or litigation.
  • Outlook excludes other unforeseen events or circumstances impacting financial performance.

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 2024

Historical avgQ2 2024

+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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