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What to Expect Ahead of Lumen's (LUMN) Q1 Earnings Release
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Lumen Technologies, Inc (LUMN - Free Report) is scheduled to report first-quarter 2024 results on Apr 30, after the closing bell.
The Zacks Consensus Estimate for total revenues is pegged at $3.39 billion, suggesting a fall of 9.3% from a year ago. The consensus estimate is currently pegged at a loss of 4 cents per share. In the year-ago quarter, LUMN reported earnings of 10 cents.
The company missed the Zacks Consensus Estimate in two of the last four quarters and beat in the remaining quarters. It has a trailing four-quarter earnings surprise of 27.78%, on average.
In the past year, shares of LUMN have lost 39.7% against the sub-industry’s growth of 55.2%.
Image Source: Zacks Investment Research
Factors to Note
Continued investments in Quantum Fiber and enterprise business are likely to have been positives. The company added 20,000 Quantum fiber subscribers, taking the count to 916,000 in the last reported quarter.
In the fourth quarter, total enablements were approximately 126,000. As of Dec 31, 2023, total enabled locations in the retained states stood at 3.7 million. LUMN is targeting to exceed 500,000 enabled locations in 2024.
Momentum in security, cloud, unified communications and IT products is also 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.
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 is another headwind. It is simplifying operations, and as part of that, it recently completed the sale of its EMEA business and certain CDN contracts.
Apart from a time-consuming business transformation endeavor, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are also likely to have negative impacts on Lumen’s first-quarter revenues.
Recent Developments
On Apr 11, 2024, Lumen won a $73.6 million contract from the U.S. Government Accountability Office to enhance the latter’s network, data, voice and video connectivity.
On Mar 22, 2024, Lumen announced that it has completed the transactions as contemplated in the earlier amended and restated transaction support agreement (TSA) entered with certain creditors of the company. LUMN now has a strong liquidity position, which includes the closing of a new $1 billion revolving credit facility (maturing in June 2028) and completion of the private placement of $1.325 billion principal amount of senior secured notes (maturing November 2029).
Looking at the company’s maturity debt profile, total maturities outstanding for 2025 to 2026 have reduced to $600 million from $2.1 billion earlier. Total maturities outstanding for 2027 are now $800 million compared with $9.5 billion earlier.
On Mar 11, 2024, management announced that it has begun a consent solicitation on Mar 8, 2024. The consent solicitation pertains to the amendment of certain indentures to enable the completion of the transactions contemplated by the previously announced (amended and restated) TSA.
Earnings Whispers
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.
LUMN has an Earnings ESP of +42.86% and 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 a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this quarter.
The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 43.3% in the past year.
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have increased 17.6% in the past year.
Woodward (WWD - Free Report) has an Earnings ESP of +4.36% and currently carries a Zacks Rank #3. WWD is scheduled to report quarterly earnings on Apr 29.
The Zacks Consensus Estimate for WWD’s to-be-reported quarter’s earnings and revenues is pegged at $1.28 per share and $804.2 million, respectively. Shares of WWD have increased 63% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What to Expect Ahead of Lumen's (LUMN) Q1 Earnings Release
Lumen Technologies, Inc (LUMN - Free Report) is scheduled to report first-quarter 2024 results on Apr 30, after the closing bell.
The Zacks Consensus Estimate for total revenues is pegged at $3.39 billion, suggesting a fall of 9.3% from a year ago. The consensus estimate is currently pegged at a loss of 4 cents per share. In the year-ago quarter, LUMN reported earnings of 10 cents.
The company missed the Zacks Consensus Estimate in two of the last four quarters and beat in the remaining quarters. It has a trailing four-quarter earnings surprise of 27.78%, on average.
In the past year, shares of LUMN have lost 39.7% against the sub-industry’s growth of 55.2%.
Image Source: Zacks Investment Research
Factors to Note
Continued investments in Quantum Fiber and enterprise business are likely to have been positives. The company added 20,000 Quantum fiber subscribers, taking the count to 916,000 in the last reported quarter.
Lumen Technologies, Inc. Price and EPS Surprise
Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. Quote
In the fourth quarter, total enablements were approximately 126,000. As of Dec 31, 2023, total enabled locations in the retained states stood at 3.7 million. LUMN is targeting to exceed 500,000 enabled locations in 2024.
Momentum in security, cloud, unified communications and IT products is also 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.
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 is another headwind. It is simplifying operations, and as part of that, it recently completed the sale of its EMEA business and certain CDN contracts.
Apart from a time-consuming business transformation endeavor, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are also likely to have negative impacts on Lumen’s first-quarter revenues.
Recent Developments
On Apr 11, 2024, Lumen won a $73.6 million contract from the U.S. Government Accountability Office to enhance the latter’s network, data, voice and video connectivity.
On Mar 22, 2024, Lumen announced that it has completed the transactions as contemplated in the earlier amended and restated transaction support agreement (TSA) entered with certain creditors of the company. LUMN now has a strong liquidity position, which includes the closing of a new $1 billion revolving credit facility (maturing in June 2028) and completion of the private placement of $1.325 billion principal amount of senior secured notes (maturing November 2029).
Looking at the company’s maturity debt profile, total maturities outstanding for 2025 to 2026 have reduced to $600 million from $2.1 billion earlier. Total maturities outstanding for 2027 are now $800 million compared with $9.5 billion earlier.
On Mar 11, 2024, management announced that it has begun a consent solicitation on Mar 8, 2024. The consent solicitation pertains to the amendment of certain indentures to enable the completion of the transactions contemplated by the previously announced (amended and restated) TSA.
Earnings Whispers
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.
LUMN has an Earnings ESP of +42.86% and 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 a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this quarter.
QUALCOMM Incorporated (QCOM - Free Report) has an Earnings ESP of +0.11% and currently carries a Zacks Rank of 2. QCOM is set to announce quarterly figures on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 43.3% in the past year.
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have increased 17.6% in the past year.
Woodward (WWD - Free Report) has an Earnings ESP of +4.36% and currently carries a Zacks Rank #3. WWD is scheduled to report quarterly earnings on Apr 29.
The Zacks Consensus Estimate for WWD’s to-be-reported quarter’s earnings and revenues is pegged at $1.28 per share and $804.2 million, respectively. Shares of WWD have increased 63% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.