Lumen Earnings: A Typical Performance as a Turnaround Remains Elusive

We’re yet to see tangible signs of real improvement in Lumen’s business, a year into CEO Kate Johnson’s tenure. Sales and profits continue to decline while Lumen manages its debt, divests businesses, and, yet again, introduces a new reporting structure in an attempt to show where progress is occurring while instead leading to further obscurity. While Johnson doesn’t deserve to be held to prior management’s rhetoric and legitimately could need more than a year to show results, the company’s current financial performance, outlook, and talking points are little different than they’ve been in the last several years. We’re maintaining our $1.50 fair value estimate and Extreme Morningstar Uncertainty Rating.