Incoming Lumen President and CEO Kate Johnson who commented, "The opportunity for Lumen is significant, and I am eager to leverage today's announcements and the adjusted capital allocation priorities to drive profitable growth and shareholder value. Entered into an exclusive arrangement to sell its EMEA business to Colt Technology for $1.8 billion. The Company eliminated its stock dividend and authorized a two-year and up to $1.5 billion share buyback program. Lumen completed its $7.5 billion divestiture of its 20-state ILEC business to Apollo on Oct.
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The Company generated $620 million in free cash flow. The Company completed the $2.7 billion divestiture of its Latin American business Stonepeak. Adjusted EBITDA fell to $1.688 billion compared to $2.078 billion in the year ago period. Revenues continued to drop (-10.2%) year-over-year (YoY) to $4.39 billion missing analyst estimates of $4.41 billion. Special items of (-$527 million) and (-$31 million) dropped EPS from $0.57 to $0.14. Net income was $578 million versus $544 million in the year-ago period. The Company reported earnings-per-share (EPS) of $0.14 missing consensus analyst estimates for $0.35 by (-$0.21). Lumen reported its Q3 2022 earnings on Nov. Top and Bottom Line Downward Trajectories Lumen faces competition from the big broadband providers like AT&T (NYSE: T), Verizon (NYSE: VZ), and Comcast (NASDAQ: CMCSA) as well as cloud service and applications providers including Amazon Web Services (NASDAQ: AMZN), Microsoft Azure (NASDAQ: MSFT), and Google Cloud (NASDAQ: GOOG). Further focus on the digitization of front and back office functions is a top priority. The Company expects an inflation impact for the full-year next year. The Board of Directors made the decision to eliminate the $1.00 annual dividend and implement a stock buyback program up to $1.5 billion with a two-year time. The Company has been shedding some of its businesses to pay down debt which will be reduced to $20.4 billion after paying it tax bill between $900 million to $1 billion for its 20-state ILEC sales of its LATAM business to Apollo for $7.5 billion.
Can the new CEO effectively change its downward trajectory? The cheap price-to-book ratio of 0.5 makes it an asset play if it continues to sell off more pieces of the whole, gets acquired, or goes private.
Google Fiber (NASDAQ: GOOG) has deployed 50,000 miles of fiber in 60 markets at a cost of over $14 billion, twice the market cap of Lumen stock. Value investors may be interested in its assets which include over 400,000 route fiber miles serving customers in over 60 countries. cities and metro areas expanding access to millions of new consumers. It's Quantum Fiber is the growth engine as it expands in over 30 U.S. The Company provides cloud, IT, voice, TV, infrastructure, internet, and broadband services to enterprise, small business, and residential customers. Legacy copper-based services would continue under CenturyLink and fiber-based products and services would service under the Quantum Fiber brand. The Company changed its name from CenturyLink to Lumen Technologies (NYSE: LUMN) on Sept. The Company continued to gobble up technology companies like Savvis, a cloud infrastructure company in 2012 and broadband provider Level 3 Communications in 2017. CenturyLink merged with Qwest to become the third-largest telecommunications company in the U.S.
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