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Lumen (LUMN) Q3 Earnings Coming Up: Here's What to Expect
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Lumen Technologies, Inc (LUMN - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, after the closing bell.
The Zacks Consensus Estimate for third-quarter total revenues is pegged at $4.41 billion, suggesting a fall of 9.7% from the year-ago quarter’s reported figure. The consensus mark for earnings is currently pegged at 36 cents per share, indicating a 26.5% decline from the year-ago quarter’s levels. Our projection for the top and bottom line is $4.382 million and 34 cents per share, respectively.
The company surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the same in the remaining quarters. It has a trailing four-quarter earnings surprise of 8.7%, on average.
In the last reported quarter, Lumen, an LA-based telecommunications company, delivered adjusted earnings (excluding special items) of 35 cents per share compared with 48 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 23.9%.
Quarterly total revenues dropped 6.3% year over year to $4,612 million, owing to the conclusion of the CAF II program. The top line marginally beat the consensus estimate by 0.3%.
In the past year, shares of the company have lost 39.1% compared with the industry’s decline of 65.3%.
Image Source: Zacks Investment Research
Factors at Play
Lumen is likely to have benefited from continued momentum in security, cloud, unified communications and IT products.
The company has been addressing the dynamic requirements of its wide enterprise customer base with various strategic initiatives. It has been working on product development, marketing initiatives and go-to-market sales efforts for more successful selling. The 8-Gig Quantum Fiber solution, launched in the last reported quarter, is also likely to have witnessed healthy adoption.
Further, continued investments in Quantum Fiber and enterprise business bode well. In the last reported quarter, Lumen added 28,000 quantum fiber subscribers, taking the count to 858,000 quantum fiber subscribers at the end of the reported quarter. Total enablements were nearly 205,000, with 185,000 of these enabled locations in the company’s 16 retained states. As of Jun 30, the total enabled locations in the retained states stood at 2.9 million. The company targets 1 million enablements by year-end.
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.
Lower-than-expected improvement in permitting processes for Quantum Fiber builds and supply chain challenges remain major headwinds.
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, forex volatility and inflationary pressure are likely to have hurt Lumen’s third-quarter revenues.
Recent Developments
In October 2022, Lumen completed the sale of the company’s incumbent local exchange carrier (ILEC) business in 20 states to Brightspeed. According to the contract, Lumen will retain its national fiber routes and associated networks and its ILEC operations in 16 states. The company will also retain its competitive local exchange carrier networks, national fiber routes, international operations, partnerships and associated networks.
In August 2022, Lumen rolled out the Lumen SASE (Secure Access Service Edge) solutions designed to enhance enterprise SASE’s purchase, configuration and management digitally. Amid increasing cyber-attack instances, it has become pertinent for business organizations to tighten IT security to protect data. The new SASE solution, powered by the Lumen platform, makes it easier for customers to buy and manage advanced security software solutions like SD-WAN and extend security on any device for any user, irrespective of location.
Further, Lumen announced an investment in edge computing to expand the company’s platform by offering Lumen Edge Virtual Machine to its customers. Lumen Edge VM provides users with low latency by leveraging the Lumen fiber network so that customers can work seamlessly on next-generation applications.
Earnings Whispers
Our proven model does not conclusively 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 -3.08% and a Zacks Rank #3. 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 Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12% in the past year.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.31% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.52 per share and $6.21 billion, respectively. Shares of CDW have lost 7.8% in the past year.
Expedia (EXPE - Free Report) has an Earnings ESP of +8.44% and presently carries a Zacks Rank #2. Expedia is slated to release quarterly numbers on Nov 3.
The Zacks Consensus Estimate for EXPE’s to-be-reported quarter’s earnings and revenues is pegged at $3.87 per share and $3.56 billion, respectively. Shares of EXPE have lost 42.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Lumen (LUMN) Q3 Earnings Coming Up: Here's What to Expect
Lumen Technologies, Inc (LUMN - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, after the closing bell.
The Zacks Consensus Estimate for third-quarter total revenues is pegged at $4.41 billion, suggesting a fall of 9.7% from the year-ago quarter’s reported figure. The consensus mark for earnings is currently pegged at 36 cents per share, indicating a 26.5% decline from the year-ago quarter’s levels. Our projection for the top and bottom line is $4.382 million and 34 cents per share, respectively.
The company surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the same in the remaining quarters. It has a trailing four-quarter earnings surprise of 8.7%, on average.
In the last reported quarter, Lumen, an LA-based telecommunications company, delivered adjusted earnings (excluding special items) of 35 cents per share compared with 48 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 23.9%.
Quarterly total revenues dropped 6.3% year over year to $4,612 million, owing to the conclusion of the CAF II program. The top line marginally beat the consensus estimate by 0.3%.
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 39.1% compared with the industry’s decline of 65.3%.
Image Source: Zacks Investment Research
Factors at Play
Lumen is likely to have benefited from continued momentum in security, cloud, unified communications and IT products.
The company has been addressing the dynamic requirements of its wide enterprise customer base with various strategic initiatives. It has been working on product development, marketing initiatives and go-to-market sales efforts for more successful selling. The 8-Gig Quantum Fiber solution, launched in the last reported quarter, is also likely to have witnessed healthy adoption.
Further, continued investments in Quantum Fiber and enterprise business bode well. In the last reported quarter, Lumen added 28,000 quantum fiber subscribers, taking the count to 858,000 quantum fiber subscribers at the end of the reported quarter. Total enablements were nearly 205,000, with 185,000 of these enabled locations in the company’s 16 retained states. As of Jun 30, the total enabled locations in the retained states stood at 2.9 million. The company targets 1 million enablements by year-end.
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.
Lower-than-expected improvement in permitting processes for Quantum Fiber builds and supply chain challenges remain major headwinds.
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, forex volatility and inflationary pressure are likely to have hurt Lumen’s third-quarter revenues.
Recent Developments
In October 2022, Lumen completed the sale of the company’s incumbent local exchange carrier (ILEC) business in 20 states to Brightspeed. According to the contract, Lumen will retain its national fiber routes and associated networks and its ILEC operations in 16 states. The company will also retain its competitive local exchange carrier networks, national fiber routes, international operations, partnerships and associated networks.
In August 2022, Lumen rolled out the Lumen SASE (Secure Access Service Edge) solutions designed to enhance enterprise SASE’s purchase, configuration and management digitally. Amid increasing cyber-attack instances, it has become pertinent for business organizations to tighten IT security to protect data. The new SASE solution, powered by the Lumen platform, makes it easier for customers to buy and manage advanced security software solutions like SD-WAN and extend security on any device for any user, irrespective of location.
Further, Lumen announced an investment in edge computing to expand the company’s platform by offering Lumen Edge Virtual Machine to its customers. Lumen Edge VM provides users with low latency by leveraging the Lumen fiber network so that customers can work seamlessly on next-generation applications.
Earnings Whispers
Our proven model does not conclusively 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 -3.08% and a Zacks Rank #3. 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.
Fortinet (FTNT - Free Report) has an Earnings ESP of +2.44% and presently carries a Zacks Rank #2. Fortinet is slated to release quarterly numbers on Nov 2.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12% in the past year.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.31% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.52 per share and $6.21 billion, respectively. Shares of CDW have lost 7.8% in the past year.
Expedia (EXPE - Free Report) has an Earnings ESP of +8.44% and presently carries a Zacks Rank #2. Expedia is slated to release quarterly numbers on Nov 3.
The Zacks Consensus Estimate for EXPE’s to-be-reported quarter’s earnings and revenues is pegged at $3.87 per share and $3.56 billion, respectively. Shares of EXPE have lost 42.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.