Although the revenue and EPS for Lumen (LUMN) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Lumen (LUMN) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.24. This compares to a loss of $0.13 per share a year ago.
Lumen Technologies Inc. has taken investors on a journey in recent years, and now it says an improving balance sheet will open up more opportunities.
Lumen Q2 2025 gains likely came from PCF momentum and AI-driven growth, despite legacy drag and high debt concerns.
Lumen's turnaround is progressing, with stable revenue and improving earnings surprises, despite recent share price declines and ongoing volatility. Lumen Technologies' stock valuation remains extremely attractive at a 0.33 P/S ratio, supported by strong cash flow margins and management's cost-saving initiatives. I maintain a cautious Buy-and-Hold stance on LUMN stock, recognizing turnaround risks but seeing significant long-term upside potential as transformation continues.
Upgrading Lumen Technologies from hold to buy, raising LUMN stock's price target to $5.64, representing a 33% upside, based on improved cost efficiency and strategic clarity. The confirmed sale of Lumen's mass markets fiber business to AT&T brings in $5 billion in cash, reduces debt by $4.8 billion, and allows the company to focus on enterprise. Despite ongoing revenue declines, Lumen's “Grow” portfolio has increased nearly 10% year-over-year, now comprising 48% of total revenue, showing strong traction in enterprise services.
Lumen is a high-risk, high-reward turnaround, with deep value at $4.20 and fair value estimated near $21 per share. The AT&T fibre sale will slash debt, boost free cash flow, and let Lumen focus on enterprise fibre for AI/cloud demand, driving long-term growth. Aggressive cost cuts, modernization, and AI-driven efficiencies are improving margins and cash flow, with EBITDA growth targeted for 2026.
Concerns about the future prospects for Lumen Technologies Inc. (NYSE: LUMN) have lingered.
LUMN stock jumps 6.75% after securing a key role in the JUNO cable, linking Japan and the United States with record bandwidth.
While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy.
Lumen Technologies, Inc. (NYSE:LUMN ) TD Cowen 53rd Annual Technology, Media & Telecom Conference Call May 28, 2025 1:50 PM ET Company Participants Chris Stansbury - Executive Vice President and Chief Financial Officer Conference Call Participants Gregory Williams - TD Cowen Gregory Williams Good afternoon. Welcome to Day One of our 53rd Annual TMT TD Cowen Conference.
Asset Sale & Strategic Shift: Lumen Technologies, Inc. is selling its Mass Markets fiber-to-home business to AT&T for $5.75B, pivoting fully toward enterprise and data center connectivity. Improved Balance Sheet: Sale proceeds will reduce $4.8B in high-interest debt, lowering annual interest expense by ~$300M and cutting net debt-to-EBITDA from 4.9x to 3.9x—paving the way toward investment-grade ratings. Revised Valuation Method: With improved financial stability, the analyst now values LUMN stock at $9.76/share, based on gross PP&E minus liabilities, up from a previous fire-sale valuation of $5/share.