Lumen (LUMN) Reports Q2 Loss, Lags Revenue Estimates

Company Performance - Lumen reported a quarterly loss of $0.03 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.24, representing an earnings surprise of +87.50% [1] - The company posted revenues of $3.09 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.06%, and down from $3.27 billion year-over-year [2] - Over the last four quarters, Lumen has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Lumen shares have declined approximately 16% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.36 on revenues of $3.07 billion, and for the current fiscal year, it is -$1.02 on revenues of $12.49 billion [7] Industry Context - The Diversified Communication Services industry, to which Lumen belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Lumen's stock performance [5]