2023-10-30 11:28:11 ET
Lumen Technologies ( NYSE: LUMN ) is set to report its third quarter results on Tuesday after markets close.
Wall Street expects the telecom firm to post third quarter Earnings Per Share (EPS) of $0.06, while revenue is expected to be $3.61 billion, implying a y-o-y fall of 17.8%.
The Monroe, Louisiana-based company has been going through tough time with its declining revenue and profitability, huge debt, stiff competition from wireless carriers and an uncertain economic scenario.
Lumen, in August, said its revenue for second quarter declined 21% to $3.66 billion.
Along with guidance, investors will look for details on its previously disclosed turnaround plan, which involves boosting its fibre network and return to growth, during the company’s earnings call.
Seeking Alpha analyst Michele Pagliaro said that the turnaround plan “underline a positive outlook in terms of niche market growth and the solutions offered by the company.”
However, Pagliaro added that the risk of an investment in Lumen is “particularly high due to the competitiveness of the industry and the need for new capital for the company's growth.”
Over the last two years, Lumen has beaten EPS estimates 63% of the time and has beaten revenue estimates 38% of the time.
Analysts are conservative on the stock, with Seeking Alpha, Wall Street and Seeking Alpha’s Quant ratings considering it a “Hold”. The stock has fallen more than 70% so far this year.
Over the last three months, EPS estimates have been revised upward three times, compared to four downward revisions, while revenue estimates have seen two upward revisions versus seven downward moves.
Earlier in October, Akamai Technologies ( AKAM ) said it has acquired certain assets from Lumen, which include select content delivery customer contracts, for an undisclosed sum.
More on Lumen
- Lumen Technologies: The Turnaround Time May Be The Right One
- Lumen Technologies And Its Looming Maturities
- Akamai buys certain customer contracts from Lumen
For further details see:
Lumen Technologies Q3 on deck, what to expect