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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 2023 results on Aug 1, after the closing bell.
The Zacks Consensus Estimate for total revenues is pegged at $3.6 billion, suggesting a fall of 22% from the year-ago quarter’s reported figure. The consensus estimate for earnings is currently pegged at 9 cents per share, indicating a decline of 74.3% from the year-ago quarter’s levels.
The company missed the Zacks Consensus Estimate in three of the last four quarters and beat once. It has a trailing four-quarter positive earnings surprise of 39.2%, on average.
In the last reported quarter, Lumen, an LA-based telecommunications company, reported adjusted earnings (excluding special items) of 10 cents compared with 63 cents in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of 12 cents.
Quarterly total revenues were $3,738 million, down 20% year over year on a reported basis and decreasing 2% on a sequential basis. The Zacks Consensus Estimate was pegged at $3,717 million. Revenues in the first quarter were significantly affected due to the completion of the sale of its Latin America business and its 20-state ILEC business to Apollo.
In the past year, shares of LUMN have lost 84.3% compared with the sub-industry’s decline of 4.8%.
Image Source: Zacks Investment Research
Factors to Note
Volatile supply-chain dynamics, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are likely to have a negative impact on Lumen’s second-quarter revenues.
While selling of non-accretive businesses is likely to bode well in the long term, it is expected to affect results in the near term. In August 2022, Lumen completed the sale of its Latin America business. It concluded the sale of its 20-state ILEC business to Apollo in October 2022. LUMN also announced to sell its Europe, Middle East and Asia business to Colt Technology Services for $1.8 billion in October 2022.
Also, LUMN has been undergoing a time-consuming digital transformation process. Weakness in the Business, Enterprise Channels and Mass markets business segments along with massive debt are other headwinds.
However, momentum in security, cloud, unified communications and IT products is likely to have offered some cushioning to the top-line performance. Management is also focusing on cost discipline and shutting down non-value-added processes which are likely to provide some support to the bottom line.
Continued investments in Quantum Fiber and enterprise business may have been positives. The company added 24,000 Quantum fiber subscribers, taking the count to 856,000 in the last reported quarter.
Our projection for the Business and Mass Markets' segments revenues are pegged at $2,713.7 million and $843.4 million per share, respectively.
Recent Development
In June 2023, Lumen collaborated with Google and Microsoft to introduce a network interconnection ecosystem – ExaSwitch. This platform enables organizations with high bandwidth requirements to efficiently route their traffic between networks without the need for third-party intervention.
The ExaSwitch project was initiated by several key participants to facilitate traffic routing between major Internet and cloud networks. The initial adopters include Lumen, Google Cloud, Microsoft Azure, and another major cloud provider. The ExaSwitch ecosystem will expand as more members join, which makes it easier to automate, boost, and effectively manage network capacity between its members.
Earnings Whisper
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.
LUMN has an Earnings ESP of -27.78% 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 stocks 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 WWD’s to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $702.2 million, respectively. The stock has increased 14.3% in the past year.
Uber Technologies (UBER - Free Report) has an Earnings ESP of +181.25% and currently carries a Zacks Rank #2. UBER is scheduled to report second-quarter 2023 earnings on Aug 1.
The Zacks Consensus Estimate for UBER’s to-be-reported quarter’s revenues is pegged at $9.32 billion while the bottom-line estimate is pegged at loss of 1 cent. The stock has gained 98.8% in the past year.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +0.31% and presently has a Zacks Rank #2. MPWR is set to report second-quarter 2023 earnings on Jul 31.
The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $2.81 per share and $440.5 billion, respectively. MPWR has delivered an average surprise of 3.3% in the trailing four quarters. The stock has gained 15.6% in the past year.
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 2023 results on Aug 1, after the closing bell.
The Zacks Consensus Estimate for total revenues is pegged at $3.6 billion, suggesting a fall of 22% from the year-ago quarter’s reported figure. The consensus estimate for earnings is currently pegged at 9 cents per share, indicating a decline of 74.3% from the year-ago quarter’s levels.
The company missed the Zacks Consensus Estimate in three of the last four quarters and beat once. It has a trailing four-quarter positive earnings surprise of 39.2%, on average.
Lumen Technologies, Inc. Price and EPS Surprise
Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. Quote
In the last reported quarter, Lumen, an LA-based telecommunications company, reported adjusted earnings (excluding special items) of 10 cents compared with 63 cents in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of 12 cents.
Quarterly total revenues were $3,738 million, down 20% year over year on a reported basis and decreasing 2% on a sequential basis. The Zacks Consensus Estimate was pegged at $3,717 million. Revenues in the first quarter were significantly affected due to the completion of the sale of its Latin America business and its 20-state ILEC business to Apollo.
In the past year, shares of LUMN have lost 84.3% compared with the sub-industry’s decline of 4.8%.
Image Source: Zacks Investment Research
Factors to Note
Volatile supply-chain dynamics, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are likely to have a negative impact on Lumen’s second-quarter revenues.
While selling of non-accretive businesses is likely to bode well in the long term, it is expected to affect results in the near term. In August 2022, Lumen completed the sale of its Latin America business. It concluded the sale of its 20-state ILEC business to Apollo in October 2022. LUMN also announced to sell its Europe, Middle East and Asia business to Colt Technology Services for $1.8 billion in October 2022.
Also, LUMN has been undergoing a time-consuming digital transformation process. Weakness in the Business, Enterprise Channels and Mass markets business segments along with massive debt are other headwinds.
However, momentum in security, cloud, unified communications and IT products is likely to have offered some cushioning to the top-line performance. Management is also focusing on cost discipline and shutting down non-value-added processes which are likely to provide some support to the bottom line.
Continued investments in Quantum Fiber and enterprise business may have been positives. The company added 24,000 Quantum fiber subscribers, taking the count to 856,000 in the last reported quarter.
Our projection for the Business and Mass Markets' segments revenues are pegged at $2,713.7 million and $843.4 million per share, respectively.
Recent Development
In June 2023, Lumen collaborated with Google and Microsoft to introduce a network interconnection ecosystem – ExaSwitch. This platform enables organizations with high bandwidth requirements to efficiently route their traffic between networks without the need for third-party intervention.
The ExaSwitch project was initiated by several key participants to facilitate traffic routing between major Internet and cloud networks. The initial adopters include Lumen, Google Cloud, Microsoft Azure, and another major cloud provider. The ExaSwitch ecosystem will expand as more members join, which makes it easier to automate, boost, and effectively manage network capacity between its members.
Earnings Whisper
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.
LUMN has an Earnings ESP of -27.78% 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 stocks 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.
Woodward (WWD - Free Report) has an Earnings ESP of +1.55% and sports a Zacks Rank #1. WWD is slated to release third-quarter fiscal 2023 numbers on Jul 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WWD’s to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $702.2 million, respectively. The stock has increased 14.3% in the past year.
Uber Technologies (UBER - Free Report) has an Earnings ESP of +181.25% and currently carries a Zacks Rank #2. UBER is scheduled to report second-quarter 2023 earnings on Aug 1.
The Zacks Consensus Estimate for UBER’s to-be-reported quarter’s revenues is pegged at $9.32 billion while the bottom-line estimate is pegged at loss of 1 cent. The stock has gained 98.8% in the past year.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +0.31% and presently has a Zacks Rank #2. MPWR is set to report second-quarter 2023 earnings on Jul 31.
The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $2.81 per share and $440.5 billion, respectively. MPWR has delivered an average surprise of 3.3% in the trailing four quarters. The stock has gained 15.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.