Earnings Alerts

Lumen Technologies (LUMN) Earnings: 2Q Revenue Meets Estimates but Cash Flow Concerns Persist

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  • Lumen Technologies reported a second-quarter revenue of $3.09 billion, aligning closely with the estimated $3.11 billion.
  • The Large Enterprise segment contributed $732 million in revenue.
  • Mid-Market Enterprise revenue amounted to $500 million.
  • Wholesale revenue was recorded at $690 million.
  • Business revenue exceeded expectations with $2.49 billion against an estimated $2.44 billion.
  • The Mass Markets segment fell short, generating $602 million, below the $673.2 million estimate.
  • The adjusted loss per share stood at 3.0 cents, significantly better than the estimated loss of 24 cents per share.
  • Adjusted EBITDA was $877 million, surpassing the estimated $847.4 million.
  • There was a negative adjusted free cash flow of $209 million.
  • Cash and cash equivalents were reported at $1.57 billion, which did not meet the estimate of $1.97 billion.
  • Capital expenditure was $891 million, below the anticipated $1.09 billion.
  • Analyst recommendations for Lumen Technologies include 4 buys, 8 holds, and 3 sells.

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Lumen Technologies on Smartkarma

Analysts on Smartkarma, like Baptista Research, are closely monitoring Lumen Technologies‘ recent moves. In their report titled “Lumen Technologies: Recent Divestiture Of Consumer Fiber Business To AT&T,” they highlight the company’s ambitious transformation showcased in the latest earnings. Lumen’s strategic focus on operational efficiency, AI infrastructure enhancement, and transitioning to a cloud-based telecommunications model led to better-than-expected financial outcomes for Q1 2025.

Another report by Baptista Research, titled “Lumen Technologies: The Top 6 Influences On Its Performance for 2025 & The Future!,” emphasizes the key factors shaping the company’s trajectory. In 2024, Lumen significantly improved its financial standing by reducing debt. The company successfully decreased debt by $1.6 billion and issued notices for another $200 million, demonstrating a clear commitment to financial restructuring for future growth and stability.


A look at Lumen Technologies Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth2
Resilience2
Momentum4
OVERALL SMART SCORE2.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Lumen Technologies shows a mixed outlook for long-term performance. While scoring higher in Momentum, suggesting strong positive market sentiment, the company lags in Dividend and Value scores. With a moderate Growth and Resilience score, Lumen Technologies appears to have some potential for expansion and stability in the face of market challenges. Overall, these scores indicate a company that may see continued growth but may not be a top performer in terms of value and dividends.

Lumen Technologies, Inc. specializes in providing digital solutions for both residential and commercial locations. Their offerings include a range of communication services, network security, cloud solutions, voice services, and managed services, which are utilized by customers across the globe. Despite some mixed scores in various key factors, Lumen Technologies aims to deliver innovative solutions to meet the evolving needs of its diverse customer base and maintain a competitive edge in the digital solutions market.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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