These numbers are coming from the 8-K report that covers the company’s fourth quarter earnings. The company achieved fourth quarter operating revenues of approximately $4.3 billion, and full year 2016 operating revenues came in at $17.5 billion. Generated operating income of $392 million was reported in the fourth quarter, full year operating income of $2.3 billion. Lastly, generated adjusted net income for the fourth quarter was $292 million and adjusted earnings per share came in at $0.54.
Now, let us take a look at the chart and see how price has been reacting. Taking a look at the monthly time frame, we can see that price is currently sitting on a support level after creating a lower high. This is difficult to read because the support level is holding but the highs are getting lower. Here, you could be watching for a squeeze play as price is pinched at the support level and lower highs. On the other hand, it could bounce off the support level and make a new higher high and keep going. Right now is a pivotal time in the chart because a move could happen soon and it would be a wise idea to use this and fundamental analysis to formulate your opinion.
How important is Lumen Technologies's Liquidity
Lumen Technologies
financial leverage refers to using borrowed capital as a funding source to finance Lumen Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lumen Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lumen Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lumen Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Lumen Technologies's total debt and its cash.
Detailed Perspective On Lumen Technologies
Risks
Being in the technology sector, there are certain risks that are almost universally known, but here are a few to keep in mind while completing research and the rest can be found within the latest 10-K report. First, rapid changes in technology could impact the competitive or financial position. Essentially, if the company is unable to arrive at the party first, they will lose out on some business. Secondly, they have to ensure they have a quality product as people may begin changing to a competitor if they are not satisfied.
Conclusion
Technology and their products are something that is going to be around for a long while and should be taken seriously in your portfolio. The potential for long-term growth is there and this company may have that possibility. Be sure to complete your research and determine if this is a solid fit for your portfolio. Lastly, if you still have questions, be sure to consult an investing professional as they can help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Lumen Technologies. Please refer to our
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