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Factors to Note Ahead of Lumen's (LUMN) Q2 Earnings Release
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Lumen Technologies, Inc. (LUMN - Free Report) is scheduled to report second-quarter 2022 results on Aug 3, after the closing bell.
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $4.6 billion, suggesting a fall of 6.6% from the year-earlier quarter’s reported figure. The consensus mark for earnings is currently pegged at 46 cents per share, indicating a 4.2% decline from the year-ago quarter’s levels.
In the last reported quarter, the Monroe, LA-based telecommunications company delivered adjusted earnings (excluding special items) of 63 cents per share compared with 44 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 37%. Quarterly revenues slipped 7% year over year to $4,676 million, owing to the conclusion of the CAF II program and seasonal factors in its Enterprise business. The top line lagged the consensus estimate by 0.1%.
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 17.6%, on average.
In the past year, shares of the company have lost 13.1% against the industry’s decline of 54.6%.
Image Source: Zacks Investment Research
Factors at Play
Lumen is likely to have benefited from continued momentum for security, cloud, unified communications and IT products. The company is focusing on addressing the dynamic requirements of its wide enterprise customer base on the back of various strategic initiatives. For instance, the company is working on product development and marketing initiatives and go-to-market sales efforts for more successful selling.
Further, continued investments in Quantum Fiber and enterprise business. In the last reported quarter, the company added 27,000 Quantum Fiber subscribers, taking the count to 830,000 quantum fiber subscribers at the end of the reported quarter.
Enhanced platform capabilities, optimized asset portfolio and robust demand for the Lumen Platform might have acted as major tailwinds. Last year, the company extended its Lumen platform with the Lumen Edge Gateway launch. It empowers enterprises with IT applications and virtualized services on edge. The compute platform delivers virtualized wide-area networking and security applications from multiple vendors on the premises edge. It facilitates medium to large-scale organizations to deploy and evolve network and security services without equipment constraints.
During the quarter under review, Lumen announced the expansion of Edge Computing Solutions in Europe by investing in the global Edge network. This expansion is a component of Lumen's ongoing investment in cutting-edge solutions that modernize digital experiences and meet the requirements of enterprises. The company aims to transform its business operations through product evolution and digitization of customer interactions.
Weakness in mid-market demand, a decline in legacy voice services and substitution of its traditional wireline telephone services by wireless and other competitive low-priced offerings, together with massive debt, are concerns. Uncertainty prevailing over global macroeconomic conditions, inflationary pressure and protracted supply chain issues are likely to have hurt Lumen’s second-quarter revenues.
Earnings Whispers
Our proven model does predict an earnings beat for Lumen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Lumen has an Earnings ESP of 1.73% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Occidental Petroleum’s to-be-reported quarter’s earnings and revenues is pegged at $2.93 per share and $9.74 billion, respectively. Occidental Petroleum delivered an average surprise of 26.2% in the preceding four quarters. Shares of OXY have soared 126.8% in the past year.
Suncor Energy (SU - Free Report) has an Earnings ESP of +11.91% and currently flaunts a Zacks Rank #2. SU is slated to release quarterly numbers on Aug 4.
The Zacks Consensus Estimate for SU’s to-be-reported quarter’s earnings and revenues is pegged at $1.74 per share and $9.9 billion, respectively. SU surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 3.6%. Shares of SU have gained 35.6% in the past year.
MercadoLibre, Inc (MELI - Free Report) has an Earnings ESP of +16.2% and a Zacks Rank #3 currently. MELI is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for MELI’s to-be-reported quarter’s earnings and revenues is pegged at $1.68 per share and $2.47 billion, respectively. MELI surpassed earnings estimates in two of the preceding four quarters and missed in the remaining quarters. The average surprise stands at 312.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of Lumen's (LUMN) Q2 Earnings Release
Lumen Technologies, Inc. (LUMN - Free Report) is scheduled to report second-quarter 2022 results on Aug 3, after the closing bell.
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $4.6 billion, suggesting a fall of 6.6% from the year-earlier quarter’s reported figure. The consensus mark for earnings is currently pegged at 46 cents per share, indicating a 4.2% decline from the year-ago quarter’s levels.
In the last reported quarter, the Monroe, LA-based telecommunications company delivered adjusted earnings (excluding special items) of 63 cents per share compared with 44 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 37%. Quarterly revenues slipped 7% year over year to $4,676 million, owing to the conclusion of the CAF II program and seasonal factors in its Enterprise business. The top line lagged the consensus estimate by 0.1%.
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 17.6%, on average.
Lumen Technologies, Inc. Price and EPS Surprise
Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. Quote
In the past year, shares of the company have lost 13.1% against the industry’s decline of 54.6%.
Image Source: Zacks Investment Research
Factors at Play
Lumen is likely to have benefited from continued momentum for security, cloud, unified communications and IT products. The company is focusing on addressing the dynamic requirements of its wide enterprise customer base on the back of various strategic initiatives. For instance, the company is working on product development and marketing initiatives and go-to-market sales efforts for more successful selling.
Further, continued investments in Quantum Fiber and enterprise business. In the last reported quarter, the company added 27,000 Quantum Fiber subscribers, taking the count to 830,000 quantum fiber subscribers at the end of the reported quarter.
Enhanced platform capabilities, optimized asset portfolio and robust demand for the Lumen Platform might have acted as major tailwinds. Last year, the company extended its Lumen platform with the Lumen Edge Gateway launch. It empowers enterprises with IT applications and virtualized services on edge. The compute platform delivers virtualized wide-area networking and security applications from multiple vendors on the premises edge. It facilitates medium to large-scale organizations to deploy and evolve network and security services without equipment constraints.
During the quarter under review, Lumen announced the expansion of Edge Computing Solutions in Europe by investing in the global Edge network. This expansion is a component of Lumen's ongoing investment in cutting-edge solutions that modernize digital experiences and meet the requirements of enterprises. The company aims to transform its business operations through product evolution and digitization of customer interactions.
Weakness in mid-market demand, a decline in legacy voice services and substitution of its traditional wireline telephone services by wireless and other competitive low-priced offerings, together with massive debt, are concerns. Uncertainty prevailing over global macroeconomic conditions, inflationary pressure and protracted supply chain issues are likely to have hurt Lumen’s second-quarter revenues.
Earnings Whispers
Our proven model does predict an earnings beat for Lumen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Lumen has an Earnings ESP of 1.73% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Occidental Petroleum Corporation (OXY - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank #2 currently. Occidental Petroleum is scheduled to report earnings results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Occidental Petroleum’s to-be-reported quarter’s earnings and revenues is pegged at $2.93 per share and $9.74 billion, respectively. Occidental Petroleum delivered an average surprise of 26.2% in the preceding four quarters. Shares of OXY have soared 126.8% in the past year.
Suncor Energy (SU - Free Report) has an Earnings ESP of +11.91% and currently flaunts a Zacks Rank #2. SU is slated to release quarterly numbers on Aug 4.
The Zacks Consensus Estimate for SU’s to-be-reported quarter’s earnings and revenues is pegged at $1.74 per share and $9.9 billion, respectively. SU surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 3.6%. Shares of SU have gained 35.6% in the past year.
MercadoLibre, Inc (MELI - Free Report) has an Earnings ESP of +16.2% and a Zacks Rank #3 currently. MELI is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for MELI’s to-be-reported quarter’s earnings and revenues is pegged at $1.68 per share and $2.47 billion, respectively. MELI surpassed earnings estimates in two of the preceding four quarters and missed in the remaining quarters. The average surprise stands at 312.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.