![]() ![]() Lumen will deliver a “fully integrated wide area data transport service with secure remote access, contact center and cloud connectivity solutions” for the USDA to over 9,500 locations. Department of Agriculture (USDA) has awarded Lumen a task order valued at more than $1.2 billion. In case you’re still skeptical of Lumen’s value proposition, I’ve got a billion reasons to invest in the company, courtesy of the U.S. Still, the bottom-line results should be considered just as important as the top-line results, if not more so. Perhaps Wall Street was disappointed because Lumen’s Q4 2021 revenue of $4,847,000 indicated a year-over-year decline of 5%. To be more precise, Lumen reported net income of $508 million in Q4 2021, compared to a net loss of $2.289 billion for the fourth quarter of 2020.įurthermore, excluding certain special items, Lumen delivered free cash flow of $3.742 billion for full-year 2021, thereby improving over the $2.979 billion from full-year 2020. Over a one-year period, Lumen swung from a net earnings loss to a profit. Were the data points really that bad, though? Or more accurately, it was the market’s reaction to those results. So, what caused the recent precipitous drop in LUMN stock? The culprit was Lumen’s fourth-quarter (Q4) and full-year 2021 fiscal results. If that is not a glass-half-full argument, then I don’t know what would be. This shatters the presumption that all technology stocks are overpriced nowadays.įinally, income-focused investors should be glad to know that Lumen pays out a generous forward annual dividend yield of 10.22%. Next, believe it or not, Lumen’s trailing 12-month price-to-earnings ratio is just 5.03. ![]() This is something that value hunters will often look for. For one thing, LUMN stock is trading around the bottom of its 52-week range of $9.66 to $15.45. Plus, there are other reasons to consider a glass-half-full perspective. On the other hand, going back to 2020, there is fairly reliable support at $9. With the share price around $9.60 today, it is undeniable that the trend is to the downside. That is the glass-half-empty perspective. Will you see the glass as half-empty, or as half-full? The doubters and naysayers will likely say that LUMN stock is “breaking down” as it has fallen below the long-standing $11 support level. So, are investors treating Lumen unfairly? In the wake of not-so-bad financial results and a big-ticket government contract, Lumen certainly seems to deserve a re-rating. ![]()
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