Lumen Technologies Shares Surge 7.68% After Beating Earnings Estimates

NEW YORK - Lumen Technologies, Inc. (NYSE: LUMN) announced its third-quarter revenue after the market closed on Tuesday, exceeding analyst expectations, and the company's shares rose by 7.68%. The telecommunications company reported revenue of $3.22 billion for the quarter, surpassing the consensus estimate of $3.21 billion. However, Lumen reported a adjusted loss of $0.13 per share, which was worse than analysts' expectations of a $0.09 loss per share.

Kate Johnson, President and CEO of Lumen Technologies, stated, "The world’s largest technology companies are choosing Lumen to build the infrastructure for the artificial intelligence economy. Moreover, businesses are realizing that every AI strategy needs a network strategy, and they are turning to Lumen for help."

Lumen's total revenue dropped by 12% year-over-year, primarily due to the divestiture of its EMEA business in November 2023. The company's North America Business segment revenue fell 7% year-over-year to $2.44 billion.

The Mass Markets segment revenue also decreased by 7% year-on-year to $685 million. However, Lumen reported a record quarter in net subscriber additions for its Quantum Fiber business.

Excluding special items, the company generated $1.2 billion in free cash flow in the third quarter, a significant improvement compared to $43 million in the same period last year.

Lumen updated its full-year 2024 outlook, raising its free cash flow forecast from a previous range of $1.0-$1.2 billion to $1.2-$1.4 billion. The company maintained its adjusted EBITDA estimate at $3.9-$4.0 billion.

Despite exceeding revenue expectations, Lumen continues to face challenges as it transforms its business. The company's net loss rose to $148 million in the third quarter, up from $78 million a year ago.