Telecommunications infrastructure company Lumen Technologies (NYSE: LUMN) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Lumen beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $3.09 billion, down 4.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.
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This quarter, analysts are expecting Lumen’s revenue to decline 8.6% year on year to $3.04 billion, a further deceleration from the 5.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.27 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lumen has missed Wall Street’s revenue estimates twice over the last two years.
With Lumen being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for telecommunication services stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Lumen is up 16.5% during the same time and is heading into earnings with an average analyst price target of $7.78 (compared to the current share price of $8.85).
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