Lumen Technologies (NYSE:LUMN) Releases Earnings Results

Lumen Technologies (NYSE:LUMN) released its earnings results on Tuesday. The technology company reported ($0.07) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.06, FiscalAI reports. The firm had revenue of $2.81 billion for the quarter, compared to the consensus estimate of $2.74 billion. The company’s revenue was down 9.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.03) EPS.

Here are the key takeaways from Lumen Technologies’ conference call:

• Strategic revenue grew 14% year over year and reached 53% of total business revenue, up from 45% a year ago, while North American enterprise revenue declined only 0.2%.
• NaaS adoption continued to accelerate, with customers exceeding 3,000, new-customer adoption up 22% quarter over quarter, active ports up 34%, and active services up 29%; more than 20% of new adopters were new to Lumen.
• Management expects the Alkira acquisition to accelerate digital growth by simplifying multi-cloud and AI networking, expanding customer wallet share, and enabling higher-margin services; Alkira was not included in prior digital revenue targets.
• Adjusted EBITDA fell to $802 million from approximately $877 million a year ago, while total business revenue declined 1.8%; management also cautioned that third-quarter EBITDA is seasonally about $100 million lower than second quarter.
• Lumen is continuing to monetize underused infrastructure through PCF deals but will avoid new projects with returns near or below its cost of capital, while phasing out enterprise voice and communications products to redirect resources toward digital services.

Lumen Technologies Price Performance

Shares of NYSE:LUMN opened at $6.08 on Thursday. The company’s 50 day simple moving average is $7.60 and its 200 day simple moving average is $7.86. The stock has a market capitalization of $6.26 billion, a price-to-earnings ratio of -5.96 and a beta of 1.78. Lumen Technologies has a 1 year low of $3.63 and a 1 year high of $11.95.

Hedge Funds Weigh In On Lumen Technologies

A number of hedge funds have recently modified their holdings of the business. Kemnay Advisory Services Inc. acquired a new position in shares of Lumen Technologies in the fourth quarter worth approximately $25,000. Los Angeles Capital Management LLC acquired a new position in Lumen Technologies in the fourth quarter valued at $35,000. Federation des caisses Desjardins du Quebec grew its holdings in Lumen Technologies by 258.4% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 6,935 shares of the technology company’s stock worth $54,000 after acquiring an additional 5,000 shares during the period. Parallel Advisors LLC lifted its stake in shares of Lumen Technologies by 22.4% in the 4th quarter. Parallel Advisors LLC now owns 8,095 shares of the technology company’s stock valued at $63,000 after purchasing an additional 1,481 shares during the period. Finally, Employees Retirement System of Texas bought a new stake in Lumen Technologies in the third quarter worth approximately $57,000. Institutional investors and hedge funds own 66.19% of the company’s stock.

Key Stories Impacting Lumen Technologies

Here are the key news stories impacting Lumen Technologies this week:

• Positive Sentiment: Q2 results exceeded expectations: Lumen reported an adjusted loss of $0.07 per share versus consensus estimates for a loss of approximately $0.13–$0.15, while revenue of $2.81 billion topped forecasts near $2.74 billion. Lumen beats revenue estimates on strong digital networking demand
• Positive Sentiment: Digital transformation is gaining traction: Strategic business revenue increased roughly 14%, now representing more than half of business revenue. Management also highlighted accelerating Network-as-a-Service adoption and Alkira’s role in expanding AI and multi-cloud networking capabilities. Lumen Q2 Earnings Call Highlights Digital Revenue Shift
• Positive Sentiment: Cash flow and guidance provided support: Free cash flow turned positive in the quarter, and Lumen maintained its full-year outlook, including an expected $1.9 billion to $2.1 billion of free cash flow. Lumen Q2: Another Step Forward
• Positive Sentiment: Cloud modernization partnership: Lumen selected Amdocs’ agentic operating system to modernize enterprise service orchestration and order management on AWS, potentially improving service innovation and execution. Lumen Extends Multi-Cloud Strategy with Amdocs
• Neutral Sentiment: John M. Hinshaw, a technology and operations veteran with experience at companies including Hewlett-Packard, Boeing and Verizon Wireless, joined Lumen’s board, adding digital-transformation and operational expertise.
• Negative Sentiment: Legacy-business decline remains significant: Total revenue fell 9.3% year over year to $2.81 billion, while EBITDA and the ongoing wind-down of traditional services continue to pressure results.
• Negative Sentiment: Analyst caution increased: Goldman Sachs reduced its price target from $8.50 to $7.25, and Wells Fargo cut its target from $9.00 to $7.50; both retained neutral or equal-weight ratings.

Analysts Set New Price Targets

Several equities analysts recently issued reports on LUMN shares. TD Cowen boosted their price objective on Lumen Technologies from $8.00 to $9.00 and gave the company a “hold” rating in a research report on Wednesday, May 6th. Wells Fargo & Company dropped their price target on Lumen Technologies from $9.00 to $7.50 and set an “equal weight” rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. boosted their target price on Lumen Technologies from $6.00 to $7.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. UBS Group boosted their price objective on shares of Lumen Technologies from $6.00 to $8.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Finally, The Goldman Sachs Group cut their price target on shares of Lumen Technologies from $8.50 to $7.25 and set a “neutral” rating on the stock in a research report on Wednesday. Nine research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $8.11.

About Lumen Technologies

Lumen Technologies is a multinational technology company specializing in integrated network, edge cloud, security and collaboration services for enterprise and public sector clients. The company’s core offerings include high-capacity fiber and IP-based connectivity, managed edge computing solutions designed to accelerate applications and data processing closer to end users, and cybersecurity services ranging from DDoS protection to unified threat management. Through its unified portfolio, Lumen enables organizations to support digital transformation initiatives, modernize infrastructure and enhance operational resilience.

Leveraging one of the largest fiber footprints in North America, as well as infrastructure in Latin America and parts of Europe, Lumen connects customers across more than 60 countries.