Lumen Technologies stock soars 8.5% as Q4 earnings, revenue beat estimates

Published 04/02/2025, 22:24
Lumen Technologies stock soars 8.5% as Q4 earnings, revenue beat estimates

DENVER - Lumen Technologies, Inc. (NYSE: LUMN) shares jumped 8.5% in after-hours trading Tuesday after the telecommunications company reported fourth quarter earnings and revenue that beat analyst expectations.

The company posted adjusted earnings per share of $0.09, surpassing the analyst consensus estimate of -$0.06. Revenue came in at $3.33 billion, topping expectations of $3.19 billion.

"We made material progress strengthening our financial position, transforming our corporate functions, and building the backbone for the AI economy," said Kate Johnson, president and CEO of Lumen.

For the fourth quarter, Lumen reported net income of $85 million, compared to a net loss of $1.995 billion in the same period last year. The prior year quarter included a $1.9 billion non-cash goodwill impairment charge.

Total (EPA:TTEF) revenue declined 5% year-over-year to $3.33 billion, primarily due to the divestiture of the company’s EMEA business in November 2023. However, revenue from North America Enterprise Channels remained relatively stable at $1.85 billion compared to $1.89 billion a year ago.

Looking ahead, Lumen provided 2025 guidance for adjusted EBITDA of $3.2 billion to $3.4 billion and free cash flow of $700 million to $900 million.

The company said it will continue to focus on "driving operational excellence, disrupting the industry by cloudifying telecom, and delivering connectivity to hyperscalers and enterprises as their demand for data grows in the era of AI."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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