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What to Expect Ahead of Lumen's (LUMN) Q2 Earnings Release
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Lumen Technologies, Inc. (LUMN - Free Report) is scheduled to report second-quarter 2024 results on Aug 6.
The Zacks Consensus Estimate for total revenues is pegged at $3.26 billion, indicating a decline of 11.1% from from the year-ago level. The consensus estimate for earnings is currently pegged at a loss of 9 cents per share. In the year-ago quarter, LUMN reported earnings of 10 cents per share.
The company's earnings missed the Zacks Consensus Estimate in two of the last four quarters and beat twice, delivering an average surprise of 23.61%.
In the past year, shares of LUMN have risen 97.6% compared with the sub-industry’s growth of 28.9%.
Image Source: Zacks Investment Research
Factors to Note
Continued investment in Quantum Fiber and enterprise business is likely to have been a tailwind. The company added 36,000 Quantum fiber subscribers, taking the total count to 952,000 in the last reported quarter.
In the first quarter, total enablements were approximately 129,000. As of Mar 31, 2024, total enabled locations in the retained states stood at 3.8 million. The company is targeting to exceed 500,000 enabled locations in 2024.
Momentum in security, cloud, unified communications and IT products is likely to have provided some cushioning to the top-line performance. In April, Lumen secured a $73.6 million contract from the U.S. Government Accountability Office to enhance the latter’s network, data, voice and video connectivity.
Management is also focusing on cost discipline and shutting down non-value-added processes, which are likely to have provided 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 a massive debt, is another headwind. The company has successfully executed a TSA debt refinancing agreement with creditors to extend the maturities of its debt.
Apart from a time-consuming business transformation endeavor, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are also likely to have had a negative impact on Lumen’s second-quarter revenues.
Recent Developments
On Aug 1, Lumen announced that it has inked a supply agreement with Corning for next-generation optical fiber cable. This agreement secures 10% of Corning's worldwide fiber capacity for Lumen in the next two years.
On Jul 24, Lumen announced that it has teamed up with Microsoft to boost its enterprise-wide digital transformation through the latter’s cloud and AI technologies. By leveraging Microsoft’s cloud and AI technologies, Lumen aims to cut technology costs, eliminate outdated systems and silos, upgrade the company’s services and develop new solutions for its global clients.
Additionally, Microsoft has selected Lumen to expand its network capacity and support the development of the company’s next-generation applications for global Microsoft platform customers.
Earnings Whispers
Our proven model does not 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. This is not the case here.
LUMN currently has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. 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 reporting cycle.
HL is scheduled to report quarterly earnings on Aug 6. The Zacks Consensus Estimate for HL’s to-be-reported quarter’s EPS and revenues is pegged at 1 cent and $208.8 million, respectively. Shares of HL have risen 2.3% in the past year.
Maplebear Inc. (CART - Free Report) has an Earnings ESP of +9.80% and a Zacks Rank #2 at present. CART is scheduled to report quarterly earnings on Aug 6.
The Zacks Consensus Estimate for EPS and revenues is pegged at 13 cents and $804.9 million, respectively. Shares of CART have lost 2% in the past year.
Hagerty, Inc (HGTY - Free Report) has an Earnings ESP of +44.44% and a Zacks Rank #2 at present. HGTY is set to report quarterly figures on Aug 6.
The Zacks Consensus Estimate for EPS and revenues is pegged at 9 cents and $312.6 million, respectively. Shares of HGTY have surged 33.9% 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) Q2 Earnings Release
Lumen Technologies, Inc. (LUMN - Free Report) is scheduled to report second-quarter 2024 results on Aug 6.
The Zacks Consensus Estimate for total revenues is pegged at $3.26 billion, indicating a decline of 11.1% from from the year-ago level. The consensus estimate for earnings is currently pegged at a loss of 9 cents per share. In the year-ago quarter, LUMN reported earnings of 10 cents per share.
The company's earnings missed the Zacks Consensus Estimate in two of the last four quarters and beat twice, delivering an average surprise of 23.61%.
In the past year, shares of LUMN have risen 97.6% compared with the sub-industry’s growth of 28.9%.
Image Source: Zacks Investment Research
Factors to Note
Continued investment in Quantum Fiber and enterprise business is likely to have been a tailwind. The company added 36,000 Quantum fiber subscribers, taking the total count to 952,000 in the last reported quarter.
In the first quarter, total enablements were approximately 129,000. As of Mar 31, 2024, total enabled locations in the retained states stood at 3.8 million. The company is targeting to exceed 500,000 enabled locations in 2024.
Momentum in security, cloud, unified communications and IT products is likely to have provided some cushioning to the top-line performance. In April, Lumen secured a $73.6 million contract from the U.S. Government Accountability Office to enhance the latter’s network, data, voice and video connectivity.
Management is also focusing on cost discipline and shutting down non-value-added processes, which are likely to have provided 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 a massive debt, is another headwind. The company has successfully executed a TSA debt refinancing agreement with creditors to extend the maturities of its debt.
Lumen Technologies, Inc. Price and Consensus
Lumen Technologies, Inc. price-consensus-chart | Lumen Technologies, Inc. Quote
Apart from a time-consuming business transformation endeavor, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are also likely to have had a negative impact on Lumen’s second-quarter revenues.
Recent Developments
On Aug 1, Lumen announced that it has inked a supply agreement with Corning for next-generation optical fiber cable. This agreement secures 10% of Corning's worldwide fiber capacity for Lumen in the next two years.
On Jul 24, Lumen announced that it has teamed up with Microsoft to boost its enterprise-wide digital transformation through the latter’s cloud and AI technologies. By leveraging Microsoft’s cloud and AI technologies, Lumen aims to cut technology costs, eliminate outdated systems and silos, upgrade the company’s services and develop new solutions for its global clients.
Additionally, Microsoft has selected Lumen to expand its network capacity and support the development of the company’s next-generation applications for global Microsoft platform customers.
Earnings Whispers
Our proven model does not 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. This is not the case here.
LUMN currently has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. 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 reporting cycle.
Hecla Mining Company (HL - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HL is scheduled to report quarterly earnings on Aug 6. The Zacks Consensus Estimate for HL’s to-be-reported quarter’s EPS and revenues is pegged at 1 cent and $208.8 million, respectively. Shares of HL have risen 2.3% in the past year.
Maplebear Inc. (CART - Free Report) has an Earnings ESP of +9.80% and a Zacks Rank #2 at present. CART is scheduled to report quarterly earnings on Aug 6.
The Zacks Consensus Estimate for EPS and revenues is pegged at 13 cents and $804.9 million, respectively. Shares of CART have lost 2% in the past year.
Hagerty, Inc (HGTY - Free Report) has an Earnings ESP of +44.44% and a Zacks Rank #2 at present. HGTY is set to report quarterly figures on Aug 6.
The Zacks Consensus Estimate for EPS and revenues is pegged at 9 cents and $312.6 million, respectively. Shares of HGTY have surged 33.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.