style-photography Lumen Technologies (NYSE: LUMN ) reported their fourth quarter and full year earnings earlier this month . The results sent panic through investors as the company’s stock plummeted, down 30% in February alone. The bonds, which were already priced at distressed levels, sank further. The company’s 2039 maturing bond, which I covered last November , has dropped to 50 cents on the dollar, now yielding over 16%. I believe the market has overreacted to Lumen’s results and created a great opportunity for income investors to pick up its debt at a discount. FINRA Lumen’s year was not without challenges. The company saw another decline in revenues, this time by more than $2 billion. While some of the decline was related to asset sales, expenses ticked up as well, creating a near $0 operating income. Fortunately, $3.2 billion of the expenses was goodwill impairment, a non-cash write-off of intangible assets. Stripping out impairments would create $1.4 billion decline in expenses on a comparable basis versus 2021 and create enough operating income to support interest expenses. SEC 10-K Lumen’s balance sheet shows the transformation that occurred due to asset sales in 2022. The company’s assets shrank by $12 billion and […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
