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Sep 30, 2022
Lumen Q3 2022 Earnings Report
Lumen's third quarter results were reported, featuring a net income increase and strategic capital allocation updates.
Key Takeaways
Lumen Technologies reported a Net Income of $578 million for Q3 2022, compared to $544 million in Q3 2021. The company updated its full-year outlook for free cash flow and capital expenditures, eliminated its stock dividend, and authorized a $1.5 billion share repurchase program. Additionally, Lumen entered an exclusive arrangement for the proposed sale of its EMEA business and completed the divestiture of its 20-state ILEC business.
Net Income increased to $578 million, up from $544 million in the same quarter last year.
Diluted EPS was $0.57, compared to $0.51 in the third quarter of 2021; excluding special items, EPS was $0.14.
Free Cash Flow was $620 million, compared to $1.072 billion for the third quarter 2021, excluding cash paid for Special Items.
The company has eliminated its stock dividend and authorized a share repurchase program of up to $1.5 billion.
Revenue by Segment
Forward Guidance
Lumen updated its full-year 2022 financial outlook, excluding the effects of Special Items and unforeseen changes.
Positive Outlook
- Adjusted EBITDA is projected to be $6.9 to $7.1 billion.
- Free Cash Flow is expected to be $2.2 to $2.4 billion.
- Net Cash Interest is estimated at $1.3 to $1.4 billion.
- Depreciation and Amortization are anticipated to be $3.2 to $3.4 billion.
- The effective income tax rate is expected to be around 26%.
Challenges Ahead
- Capital Expenditures are projected to be $3.0 to $3.2 billion.
- Stock-based Compensation Expense is expected to be approximately $100 million.
- Cash Income Taxes are estimated to be around $100 million.
- The outlook excludes the impacts of Special Items and future changes in operating or capital allocation plans.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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