We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lumen (LUMN) to Report Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Lumen Technologies, Inc. (LUMN - Free Report) , previously known as CenturyLink, is scheduled to report third-quarter 2020 results on Nov 4, after the closing bell. In the June quarter, the company delivered a positive earnings surprise of 31.3%. Lumen topped the Zacks Consensus Estimate for earnings twice in the trailing four quarters, the positive surprise being 7.7%, on average.
The Monroe, LA-based telecommunications company is expected to have recorded lower third-quarter revenues on a year-over-year basis due to challenges induced by the COVID-19 pandemic. Persistent decline in legacy voice services, intense competition and currency headwinds along with reduced levels of business activities across Asia, Latin America and Europe are likely to have further dented Lumen’s third-quarter results.
Factors at Play
During the quarter under review, CenturyLink changed its name to Lumen Technologies to highlight its focus on assisting enterprises with technological innovations and next-gen network services like real-time virtual collaboration, industrial robotics and automated factories. This strategic initiative is likely to boost Lumen’s competitive position in the global market while allowing it to stay ahead of the curve with highly interconnected global fiber network infrastructure. The rebranded company focuses on four key areas — Communications & Collaboration, Edge Cloud & IT Agility, Connected Security and Adaptive Networking. It also unveiled Quantum Fiber, a fully digital platform to support small scale businesses and residents with avant-garde fiber-based products and services.
In the third quarter, Lumen inked a contract with the State of Arizona to provide network connectivity and managed IT services in a bid to support state government agencies with best-in-class network infrastructure. The agreement is expected to have reinforced Lumen’s technology platform and digital services to meet the evolving needs of customers in an effective manner. This is likely to be positively reflected in the upcoming results.
However, forex woes, decline in legacy voice services and loss of broadband subscribers coupled with Small and Medium Business (SMB) and wholesale segment headwinds triggered by COVID-19 crisis are likely to have had an adverse impact on Lumen’s third-quarter revenues. Moreover, improvement in the quality of Voice over Internet Protocol services has enabled cable TV, Internet and telephone companies to offer services at attractive price points. Lumen’s core local phone business is likely to have slowed down significantly due to the substitution of traditional wireline telephone services by wireless and other competitive offerings and lower long-distance minutes of use as consumers tend to move to low-cost alternatives post coronavirus outbreak.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $5,150 million, indicating an 8.1% decline from the year-ago quarter’s reported figure. Adjusted earnings per share currently stands at 31 cents which matches with the figure reported in the prior-year quarter.
What Our Model Says
Our proven model predicts 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. This is perfectly the case here.
Earnings ESP: Lumen’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +9.68% as the former is pegged at 34 cents and the latter at 31 cents.
Zacks Rank: Lumen currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other 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:
Cross Country Healthcare, Inc. (CCRN - Free Report) is scheduled to release third-quarter 2020 results on Nov 4. The company has an Earnings ESP of +66.67% and carries a Zacks Rank #2, at present.
Rayonier Advanced Materials Inc. (RYAM - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 2. The company is set to report third-quarter 2020 results on Nov 4.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Lumen (LUMN) to Report Q3 Earnings: What's in the Cards?
Lumen Technologies, Inc. (LUMN - Free Report) , previously known as CenturyLink, is scheduled to report third-quarter 2020 results on Nov 4, after the closing bell. In the June quarter, the company delivered a positive earnings surprise of 31.3%. Lumen topped the Zacks Consensus Estimate for earnings twice in the trailing four quarters, the positive surprise being 7.7%, on average.
The Monroe, LA-based telecommunications company is expected to have recorded lower third-quarter revenues on a year-over-year basis due to challenges induced by the COVID-19 pandemic. Persistent decline in legacy voice services, intense competition and currency headwinds along with reduced levels of business activities across Asia, Latin America and Europe are likely to have further dented Lumen’s third-quarter results.
Factors at Play
During the quarter under review, CenturyLink changed its name to Lumen Technologies to highlight its focus on assisting enterprises with technological innovations and next-gen network services like real-time virtual collaboration, industrial robotics and automated factories. This strategic initiative is likely to boost Lumen’s competitive position in the global market while allowing it to stay ahead of the curve with highly interconnected global fiber network infrastructure. The rebranded company focuses on four key areas — Communications & Collaboration, Edge Cloud & IT Agility, Connected Security and Adaptive Networking. It also unveiled Quantum Fiber, a fully digital platform to support small scale businesses and residents with avant-garde fiber-based products and services.
In the third quarter, Lumen inked a contract with the State of Arizona to provide network connectivity and managed IT services in a bid to support state government agencies with best-in-class network infrastructure. The agreement is expected to have reinforced Lumen’s technology platform and digital services to meet the evolving needs of customers in an effective manner. This is likely to be positively reflected in the upcoming results.
However, forex woes, decline in legacy voice services and loss of broadband subscribers coupled with Small and Medium Business (SMB) and wholesale segment headwinds triggered by COVID-19 crisis are likely to have had an adverse impact on Lumen’s third-quarter revenues. Moreover, improvement in the quality of Voice over Internet Protocol services has enabled cable TV, Internet and telephone companies to offer services at attractive price points. Lumen’s core local phone business is likely to have slowed down significantly due to the substitution of traditional wireline telephone services by wireless and other competitive offerings and lower long-distance minutes of use as consumers tend to move to low-cost alternatives post coronavirus outbreak.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $5,150 million, indicating an 8.1% decline from the year-ago quarter’s reported figure. Adjusted earnings per share currently stands at 31 cents which matches with the figure reported in the prior-year quarter.
What Our Model Says
Our proven model predicts 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. This is perfectly the case here.
Earnings ESP: Lumen’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +9.68% as the former is pegged at 34 cents and the latter at 31 cents.
Lumen Technologies, Inc. Price and EPS Surprise
Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. Quote
Zacks Rank: Lumen currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other 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:
MercadoLibre, Inc. (MELI - Free Report) is slated to release third-quarter 2020 results on Nov 4. It has an Earnings ESP of +269.05% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare, Inc. (CCRN - Free Report) is scheduled to release third-quarter 2020 results on Nov 4. The company has an Earnings ESP of +66.67% and carries a Zacks Rank #2, at present.
Rayonier Advanced Materials Inc. (RYAM - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 2. The company is set to report third-quarter 2020 results on Nov 4.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>