Lumen Stock Slips After Earnings Miss: Why I'm Not Worried
On Wednesday afternoon, Lumen Technologies (NYSE: LUMN) reported disappointing earnings results for the second quarter of 2022. Adjusted earnings per share (EPS) plunged 27% to $0.35, falling well short of the analyst consensus of $0.46.
Lumen stock fell as much as 6% on Thursday following the earnings miss, though it recovered somewhat to end the day down 3%. If anything, this decline represents a buying opportunity, as the telecom company has continued to make good progress on its strategic plan in recent months.
In the second quarter, Lumen's revenue trajectory improved modestly. While the top line is still falling, revenue declined 3.4% year over year on an organic basis, compared to a 5.5% decline in the first quarter. Excluding a one-time adjustment related to the CAF II federal subsidy program (which ended last year), revenue was flat compared to the first quarter.
Source Fool.com
