Lumen Technologies has partnered with Google Cloud to enhance its digital transformation and AI innovation efforts. The collaboration involves using Google Cloud's infrastructure and AI platforms to power Lumen's Digital Twin technology, which provides real-time network insights to improve operational efficiency and customer service. Additionally, Lumen's Private Connectivity Fabric will expand Google's network capabilities to meet growing demand for its cloud services. This partnership aims to drive significant business outcomes by leveraging AI and network advancements.
A water line break at Lumen Technologies in Des Moines caused widespread phone and internet outages in Iowa, impacting hospitals and emergency services. While most broadband services have been restored, work continues on landline 911 and phone services. The outage affected various communities and businesses, with emergency management agencies advising the use of mobile phones for 911 calls.
Lumen Technologies revealed that a third-party light pole installation caused the recent 911 outage in Nevada, South Dakota, and Nebraska, which lasted approximately two and a half hours. Metro Communications received 112 calls for service during the outage, and emergency services were not impacted. The outage was quickly addressed, and city officials, including Sioux Falls Mayor Paul TenHaken, commended the response to the situation. The outage was linked to Lumen Technologies, the provider for South Dakota, and the company has apologized for the inconvenience.
Lumen Technologies' stock is plummeting after the company reported third-quarter earnings that fell short of expectations. While sales were higher than anticipated, investors are concerned about the company's financial moves, including a major financing agreement with creditors. Lumen's stock has lost about 80% of its value this year and trades at low multiples, but its turnaround initiatives and complicated financial structure make it a risky investment.
Lumen Technologies disclosed a goodwill impairment charge of nearly $9 billion in Q2 due to a decline in its shares, causing its stock to slip 7.9% after hours. The telecom firm reported Q2 earnings per share of $0.10, beating estimates by 2 cents. Revenue declined 21% year-over-year to $3.66 billion. Lumen attributed the impairment charge to the difference between its market capitalization and carrying value, primarily in its North America business unit. The company's stock has fallen 14.7% in Q2 and 61.1% year-to-date. Lumen also mentioned potential liability related to toxic lead cables, as reported by the Wall Street Journal.
Lumen Technologies shares dropped over 8% after reporting a massive quarterly net loss of $8.74 billion, primarily due to an impairment charge of nearly $9 billion. The company's long-term debt stands at $19.9 billion, and it is undergoing a digital transformation process while facing stiff competition from wireless carriers. Lumen's revenue for the second quarter narrowly missed analysts' estimates.
Lumen Technologies shares dropped over 8% after reporting a massive quarterly net loss of $8.74 billion, primarily due to an impairment charge of nearly $9 billion. The company's long-term debt stands at $19.9 billion, and it is undergoing a digital transformation process while facing stiff competition from wireless carriers. Lumen's revenue in the second quarter narrowly missed analysts' estimates.
Lumen Technologies reported Q2 non-GAAP EPS of $0.10, beating expectations by $0.02. Revenue for the quarter was $3.66 billion, in line with expectations. The company generated adjusted EBITDA of $1.229 billion, compared to $1.811 billion in the same period last year. Lumen Technologies also provided its 2023 outlook, including adjusted EBITDA of $4.6 to $4.8 billion, free cash flow of $0 to $200 million, net cash interest of $1.1 to $1.2 billion, and capital expenditures of $2.9 to $3.1 billion.
Lumen Technologies reported Q2 non-GAAP EPS of $0.10, beating expectations by $0.02. Revenue for the quarter was $3.66 billion, in line with expectations. The company saw increased business growth product revenue compared to the previous quarter, showing improvement from the same period last year when considering divested businesses.
Logitech shares fell 12.3% after CEO Bracken Darrell announced his departure, while UnitedHealth dropped 7% due to rising costs from more seniors getting medical procedures delayed during the pandemic. Toyota's shares gained 4.5% after shareholders reelected chairman Akio Toyoda in an endorsement of the company's governance and new electric vehicle strategy. Lumen Technologies gained 6% after announcing a new network interconnection ecosystem, while Advanced Micro Devices gained nearly 2% following the announcement of its latest artificial intelligence chips and reports that Amazon Web Services is considering using them.
Lumen Technologies' shares rose by 5% in premarket trading after the company announced that it has collaborated with Microsoft and Google on a new product called ExaSwitch network interconnection ecosystem. The platform enables organizations with high bandwidth needs to route their traffic dynamically and quickly between networks without third-party intervention. Lumen's shares have lost almost two-thirds of their value in 2023, while the S&P 500 has advanced 12%.
