One such business is the fiber broadband segment, which is rapidly expanding and profited from an 18% increase in sales in 3Q-22. Lumen Technologies fundamentally transformed its business in 2022, and the company is now focusing more on those aspects of the business that have the potential to deliver future sales and profit growth. The market has clearly had a lot to digest in terms of Lumen Technologies in 2022 (including three major asset sales and a dividend cut), so perhaps analysts should err on the side of caution and wait for Lumen Technologies to create earnings visibility. Lumen Technologies has surprised to the downside in the last two quarters, but earnings expectations for the company's 4Q-22 appear to have been lowered to such an extent relative to prior quarters that the company should be able to step over this low hurdle rather comfortably in the first week of February. Lumen Technologies will report 4Q-22 earnings on February 7, 2023, and the market currently expects only $0.21 per share, a 59% decrease YoY. Moving Averages () Lumen Technologies’ 4Q-22 Earnings Report Might Be A Catalyst For An Upside Breakout A break above $5.50, where the 50-day moving average line is currently located, would be another bullish sign for the stock. Lumen Technologies has developed strong support in the $5.00-5.25 price range, which may protect LUMN from further declines. Lumen Technologies' stock has since formed a double-bottom chart pattern, which is considered a bullish signal and could indicate that the stock is gaining strength for an upside breakout. The low point was $4.96, reflecting a 30% drop in price since Lumen Technologies announced the abolition of its dividend the day before. Lumen Technologies' stock has made successive new lows between November 2022 and January 2023 after the company eliminated its dividend in November as part of a broader reset of its business priorities. Lumen Technologies has become much less appealing to dividend investors, but I believe the 30% drop since November represents a great opportunity to buy the stock at a very attractive earnings multiple.įurthermore, I believe the stock has double-bottomed, which is a bullish signal that could indicate an upside breakout. ( NYSE: LUMN) has cut its generous 13% dividend for almost three months in order to relieve pressure on its free cash flow and apply more of its cash to outstanding debt.
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