- Lumen Technologies forecasts capital expenditure between $4.10 billion and $4.30 billion, exceeding the estimate of $3.87 billion.
- Adjusted EBITDA is projected between $3.20 billion and $3.40 billion, slightly below the estimate of $3.43 billion.
- For the fourth quarter, adjusted earnings per share (EPS) stand at 9.0 cents, against an expected loss of 4.6 cents per share.
- Reported revenue for the fourth quarter is $3.33 billion, surpassing the estimate of $3.2 billion.
- Revenue by segment: Large Enterprise – $845 million; Mid-Market Enterprise – $452 million; Wholesale – $716 million; Business – $2.66 billion, above the $2.53 billion estimate; Mass Markets – $670 million, slightly under the $671 million estimate.
- Adjusted EBITDA for the fourth quarter reached $1.05 billion, slightly higher than the estimated $1 billion.
- There was a negative adjusted free cash flow of $174 million.
- The company holds cash and cash equivalents of $1.89 billion, falling short of the $2.38 billion estimate.
- Capital expenditure for the fourth quarter was $915 million, just above the estimate of $910.7 million.
- Analyst ratings include 1 buy, 10 holds, and 4 sells.
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Lumen Technologies on Smartkarma
Independent analysts on Smartkarma are closely monitoring Lumen Technologies, providing insightful research on the company’s strategic moves and financial trends. Baptista Research recently delved into Lumen’s third-quarter 2024 performance, highlighting the company’s efforts to transition towards digital networking and AI infrastructure amidst revenue challenges from legacy sectors. The analysts at Baptista Research are evaluating key drivers that could impact Lumen’s stock price, utilizing a Discounted Cash Flow (DCF) methodology for an independent valuation.
On the flip side, Value Investors Club offered a contrasting view, expressing bearish sentiment on Lumen Technologies post a stock surge and a partnership with Microsoft for backhaul connections. The disagreement stems from undisclosed reasons, with concerns about aspects not specified in the analysis summary. Despite differing opinions, both analyst reports shed light on Lumen’s strategic directions and the complexities it faces as it navigates a transforming industry landscape.
A look at Lumen Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 1.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Lumen Technologies has a mixed outlook for the long term. While the company scores decently in areas such as Value, Growth, Resilience, and Momentum, it falls short in terms of Dividend score. Lumen Technologies, Inc. provides digital solutions for both home and business premises, offering a range of communication, network security, cloud solutions, voice, and managed services to customers globally.
While the company shows potential for growth and resilience in the market, investors might want to consider the lower Dividend score as a point of caution. Overall, Lumen Technologies seems to have a balanced performance across different factors, indicating a stable outlook for the future in providing digital solutions to a diverse range of customers worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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