[ad_1]
Lumen Technologies, Inc. LUMN released decent fourth quarter 2020 results, in which the bottom line beat Zacks’ consensus estimate.
Conclusion
Net loss for the December quarter was $ 2,289 million, a loss of $ 2.12 per share compared to net income of $ 223 million or 21 cents per share in the quarter last year. The deterioration results mainly from an operating loss.
In 2020, the net loss was $ 1,232 million, a loss of $ 1.14 per share, compared to a net loss of $ 5,269 million or a loss of $ 4.92 per share in 2019.
However, quarterly adjusted net income (excluding integration and transformation costs and special items) was $ 522 million or 48 cents per share compared to $ 352 million or 33 cents per share in the quarter of the previous exercise. The bottom line beat the Zacks consensus estimate by 16 cents.
Lumen Technologies, Inc. Price, Consensus and Surprise EPS
Lumen Technologies, Inc. graph-price-consensus-eps-surprise | Quote from Lumen Technologies, Inc.
Top line
Total quarterly operating revenue slipped 3.4% year over year to $ 5,125 million. This is due to declining sales in the International and Global Accounts (IGAM), Small and Medium Business (SME), Wholesale and Consumer segments. The top line narrowly missed the consensus estimate of $ 5,126 million.
Small business revenues fell 7.1% year over year to $ 618 million due to a decline in traditional voice services. Wholesale trade revenues fell 6.2% to $ 922 million. Consumer revenues fell to $ 1,299 million from $ 1,354 million in the quarter last year. IGAM’s revenue fell 1.6% to $ 856 million. Business revenues were almost flat year over year at $ 1,430 million.
In 2020, revenue declined 3.5% year over year to $ 20,712 million.
Other quarterly details
Total operating expenses increased 55.5% year over year to $ 6,934 million, due to goodwill impairment of $ 2,642 million. dollars. Operating loss was $ 1,809 million compared to operating income of $ 847 million in the prior year quarter.
Adjusted EBITDA slipped to $ 2,083 million from $ 2,105 million. Adjusted EBITDA margin was 40.6% compared to 39.7% in the last year quarter. Capital expenditures were $ 758 million, compared to $ 940 million in the prior year quarter.
Cash flow and liquidity
In 2020, Lumen generated $ 6,524 million in net operating cash compared to $ 6,680 million in 2019. Free cash flow (excluding integration and transformation costs and special items) was 3,131 million dollars compared to 3,276 million dollars.
As of December 31, 2020, the company had $ 406 million in cash and cash equivalents with $ 29,410 million in long-term debt. This compares to the respective figures of $ 1,690 million and $ 32,394 million a year ago.
Outlook 2021
For 2021, Lumen expects Adjusted EBITDA of between $ 8.4 billion and $ 8.6 billion. Adjusted free cash flow is expected to be between $ 2.8 billion and $ 3 billion. Capital expenditures are estimated to be between $ 3.5 billion and $ 3.8 billion. Depreciation and amortization are expected to be between $ 4.2 billion and $ 4.4 billion. The effective tax rate is likely 27%.
Rank Zacks and actions to consider
Lumen currently wears a Zacks # 3 (Hold) rank.
Some top-ranked stocks in the industry are Harsco HSC; Luna Innovations LUNA and Riot blockchain RIOT, each wearing a Zacks # 2 rank (Purchase). You can see The full list of current Zacks # 1 Rank (Strong Buy) stocks here.
Harsco had a positive surprise of 463.1% on the results of the last four quarters, on average.
Luna Innovations recorded a positive surprise of 47.5% on average over the last four quarters.
Riot Blockchain delivered a positive surprise of 3.4% on average on the results of the last four quarters.
Growth of + 1500%: one of the most interesting investment opportunities of 2021
In addition to the stocks you talked about above, would you like to see Zacks’ top picks for capitalizing on the Internet of Things (IoT)? It is one of the fastest growing technologies in history, with approximately 77 billion devices to be connected by 2025. That equates to 127 new devices per second.
Zacks has published a special report to help you capitalize on the exponential growth of the Internet of Things. It reveals 4 little-known stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report
Harsco Corporation (HSC): Free Inventory Analysis Report
Luna Innovations Incorporated (LUNA): Free Inventory Analysis Report
Riot Blockchain, Inc. (RIOT): Free Stock Analysis Report
Lumen Technologies, Inc. (LUMN): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks investment research
[ad_2]
Source link