Analyst Note
| Matthew Dolgin, CFA |Lumen again exceeded FactSet consensus revenue and profit estimates in the third quarter, and unlike the second quarter, where we thought some revenue benefits were unsustainable, we expect much of the progress this quarter to be repeatable. While sales remain on the downtrend, the firm continues to extract cost savings, produce significant amounts of cash, and strengthen its balance sheet, leaving the stock too cheap in our view. We are maintaining our $18 fair value estimate.