Lumen Set to Report Q4 Earnings: Here's What Investors Should Know

Lumen Technologies, Inc LUMN is scheduled to report fourth-quarter 2024 results on Feb. 4.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate for total revenues is pegged at $3.22 billion, indicating a fall of 8.4% from a year-ago reported number. The consensus estimate for earnings is currently pegged at a loss of 8 cents per share. In the year-ago quarter, LUMN reported earnings of 8 cents per share.The company missed the Zacks Consensus Estimate in two of the last four quarters and beat in the remaining quarters. It delivered a trailing four-quarter earnings surprise of 80.98%, on average. In the past year, shares of LUMN have gained 309.9% compared with the sub-industry’s growth of 75%.Image Source: Zacks Investment ResearchFactors to Note Ahead of LUMN’s Q4 ResultsLumen continues to witness weakness in the legacy business. In the last reported quarter Lumen’s total revenues declined 11.5% year over year due to the negative impact of divestitures, commercial agreements and the sale of the CDN business. Secular headwinds in the legacy business are likely to remain a strain on the top-line expansion at least in the near term.Lumen’s shift toward newer growth products like fiber and cloud-based offerings bodes well. Amid the rapid proliferation of AI, Lumen's strategic investments in fiber infrastructure position it well to make the most of the growing demand for data center connectivity.Demand for the company’s Private Connectivity Fabric (“PCF”) solutions has been emerging as an encouraging development. On the last earnings call, management highlighted that the company secured an additional $3 billion in incremental PCF deals, bringing the total to $8 billion in new PCF sales since June 2024. Higher uptake for Lumen services, particularly for Waves and IP in its large enterprise and mid-market segments is likely to have been another tailwind.Continued investments in Quantum Fiber and enterprise business are positives. Lumen anticipates witnessing healthy momentum in the Quantum business in the upcoming quarters. The company added 43,000 Quantum fiber subscribers, taking the count to one million in the reported quarter. In the last reported quarter, the company added 131,000 Fiber broadband-enabled locations. As of Sept. 30, 2024, the total enabled locations in the retained states were four million. The company has been targeting to achieve 500,000 enabled locations in 2024.Increasing adoption of Network-as-a-Service (NaaS) solutions is also likely to have contributed to the top-line expansion in the fourth quarter.Lumen Technologies, Inc. Price and EPS Surprise Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. QuoteManagement has been also focusing on cost discipline and shutting down non-value-added processes, which are likely to have provided some support to the bottom line.Lumen raised its free cash flow guidance for 2024, driven by higher cash flows associated with PCF sales growth. For 2024, free cash flow is now anticipated to be between $1.2 billion and $1.4 billion. Earlier, the company expected free cash flow in the range of $1-$1.2 billion. For 2024, Lumen continues to expect adjusted EBITDA in the band of $3.9-$4 billion and capital expenditures to be between $3.1 billion and $3.3 billion.Nonetheless, uncertainty prevailing over global macroeconomic conditions, forex volatility and stiff competition in the AI space remain concerns.Earnings Whispers for LUMNOur 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. This is not the case here.LUMN currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.QUALCOMM Incorporated QCOM currently has an Earnings ESP of +3.34% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. QCOM is scheduled to report quarterly earnings on Feb. 5. The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.93 per share and $10.92 billion, respectively. Shares of QCOM have gained 15.8% in the past year.O'Reilly Automotive, Inc. ORLY presently has an Earnings ESP of +6.71% and a Zacks Rank #2. ORLY is scheduled to report quarterly numbers on Feb. 5. The Zacks Consensus Estimate for ORLY’s to-be-reported quarter’s earnings and revenues is pegged at $9.84 per share and $4.03 billion, respectively. Shares of ORLY have risen 28.1% in the past year.Amazon.com, Inc. AMZN has an Earnings ESP of +4.78% and a Zacks Rank #2 at present. AMZN is scheduled to report quarterly figures on Feb. 6. The Zacks Consensus Estimate for AMZN’s to-be-reported quarter’s earnings and revenues is pegged at $1.52 per share and $187.28 billion, respectively. Shares of AMZN have increased 51.2% in the past year. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report Lumen Technologies, Inc. (LUMN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks