Shares of technology and communications services provider Lumen Technologies (NYSE:LUMN) are plummeting today after it disclosed a $9 billion goodwill impairment charge in the second quarter.
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The goodwill impairment comes after a nearly 81.6% drop in Lumen shares over the past year. Further, its second-quarter performance was characterized by a double-digit decline across Large Enterprise, Mid-Market Enterprise, Public Sector, Wholesale, and Mass Markets sales channels.
This translated into Q2 revenue dropping 20.6% year-over-year to $3.66 billion. While the figure was in line with estimates, EPS at $0.10 landed better than expectations by $0.02.
Looking ahead, for full-year 2023, Lumen now expects adjusted EBITDA to hover between $4.6 billion and $4.8 billion. While free cash flow is anticipated between flat to $200 million, capital expenditures are seen hovering between $2.9 billion and $3.1 billion.
Overall, the Street has a $8.18 consensus price target on Lumen alongside a Moderate Sell consensus rating. Short interest in the stock is now inching upward of 14%.
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