Telecommunications company Lumen Technologies, Inc. (LUMN) has reported mixed results for the second quarter ended June 30, 2021. Following the news, shares of the company declined marginally to close at $12.65 in the extended trading session.
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Lumen reported quarterly revenues of $4.92 billion, down 5% from the previous year. The decline in revenues was primarily due to a 10% fall in Mid-Market Enterprise revenues. Moreover, it failed to surpass the consensus estimate of $4.99 billion.
Earnings per share (EPS) stood at $0.48, up 23.1% from the same quarter last year, topping the Street’s estimate of $0.41.
Adjusted EBITDA declined 1.2% and stood at $2.109 billion. However, the adjusted EBITDA margin rose 170 basis points (bps) from the previous year to 42.8%.
Meanwhile, the company has lowered its 2021 guidance for capital expenditure from $3.5-$3.8 billion to $3.2-$3.5 billion.
The CEO of Lumen, Jeff Storey, said, “Lumen delivered solid Adjusted EBITDA and Free Cash Flow in the second quarter, and we are executing on our strategy to optimize the Lumen asset portfolio, positioning the company for future growth.” (See Lumen stock chart on TipRanks)
Recently, Citigroup analyst Michael Rollins initiated coverage on the stock with a Sell and a price target of $10. The analyst’s price target implies downside potential of 21.6% from current levels.
Consensus among analysts is a Hold based on 1 Buy, 4 Holds and 3 Sells. The average Lumen price target of $11.67 implies downside potential of 8.5% from current levels. Shares of the company have gained 29.1% over the past year.
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