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Yahoo Finance Plus Lumen (LUMN) Q4 Earnings Coming Up: Here's What to Expect
Lumen Technologies, Inc LUMN is scheduled to report fourth-quarter 2022 results on Feb 7, after the closing bell.
The Zacks Consensus Estimate for total revenues is pegged at $3.74 billion, suggesting a fall of 22.9% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is currently pegged at 13 cents per share, indicating a 74.5% decline from the year-ago quarter’s levels. Our projection for the top and bottom line is $3.585 billion and 4 cents per share, respectively.
The company missed the Zacks Consensus Estimate in three of the last four quarters and beat once. It has a trailing four-quarter negative earnings surprise of 13.83%, on average.
In the last reported quarter, Lumen, an LA-based telecommunications company, delivered adjusted earnings (excluding special items) of 14 cents per share compared with 49 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate by 61.1%.
Lumen Technologies, Inc. Price and EPS Surprise
Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. Quote
Quarterly total revenues dropped 10.2% year over year to $4,390 million. On a pro forma basis, quarterly total revenues declined 6% year over year to $4,328 million.
In the past year, shares of the company have lost 57.5% compared with the sub-industry’s decline of 27.3%
Image Source: Zacks Investment Research
Factors at Play
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. The company is undergoing a time-consuming digital transformation process.
Supply-chain woes, uncertainty prevailing over global macroeconomic conditions, forex volatility and inflationary pressure are likely to have affected Lumen’s fourth-quarter revenues. Conclusion of CAF II program is likely to result in tougher year-over-year comparisons.
However, momentum in security, cloud, unified communications and IT products is likely to have offered some cushioning to the top-line performance.
Further, continued investments in Quantum Fiber and enterprise business bode well. In the last reported quarter, Lumen added 31,000 quantum fiber subscribers, taking the count to 889,000 quantum fiber subscribers at the end of the reported quarter. Total “enablements” were nearly 210,000, with 195,000 of these enabled locations in the company’s 16 retained states. As of Sep 30, 2022, the total enabled locations in the retained states stood at 3 million.
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 -24.00% and a Zacks Rank #4 (Sell). 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.
Onto Innovation ONTO has an Earnings ESP of +4.22% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Onto Innovation’s to-be-reported quarter’s earnings and revenues are pegged at $1.34 per share and $255 million, respectively. Shares of ONTO have lost 10.3% in the past year.
Perion Network PERI has an Earnings ESP of +13.4% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 8.
The Zacks Consensus Estimate for Perion Network’s to-be-reported quarter’s earnings and revenues are pegged at 70 cents per share and $205.1 million, respectively. Shares of PERI have gained 60.1% in the past year.
Take-Two Interactive Software TTWO has an Earnings ESP of +3.54% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 6.
The Zacks Consensus Estimate for TTWO’s to-be-reported quarter’s earnings and revenues are pegged at 88 cents per share and $1.44 billion, respectively. Shares of the company have lost 32% of their value in the past year.
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Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
Perion Network Ltd (PERI) : Free Stock Analysis Report
Onto Innovation Inc. (ONTO) : Free Stock Analysis Report
Lumen Technologies, Inc. (LUMN) : Free Stock Analysis Report
