NYSE-listed Lumen Technologies, Inc. (NYSE:LUMN) has seen a recent 15% surge in its share price, adding an additional $192m to its market cap. This comes following a five-year period during which the company's shares declined by 93%. The recent uptick is notable given the long-term downward trend of the company's stock.
However, it's important to note that this surge may not signal a sustainable recovery for Lumen's shares. The rise in share price is potentially a temporary bounce, possibly influenced by the company's fundamental business performance.
Over the past five years, Lumen's earnings per share (EPS) have significantly fallen into loss territory due to extraordinary items. These factors have had a substantial impact on the company's share price movement.
The recent surge in Lumen Technologies' share price stands out against the backdrop of its five-year decline. However, with the company's EPS falling into loss territory due to extraordinary items, it remains to be seen whether this increase will translate into a sustainable recovery for the telecom company.
InvestingPro Insights
Drawing from InvestingPro data, Lumen Technologies, Inc. (NYSE:LUMN) currently has a market capitalization of 1500M USD, with a negative P/E ratio of -0.14. The company has experienced a significant revenue decline of -18.05% over the last twelve months as of Q2 2023, and its return on assets stands at -22.84%.
Turning to InvestingPro Tips, it's noteworthy that despite operating with a significant debt burden, Lumen has been aggressively buying back shares. This could be a contributing factor to the recent surge in its share price. Furthermore, the company has upheld dividend payments for 49 consecutive years, a trend that is expected to continue thanks to strong earnings.
Yet, it's crucial to consider that Lumen's stock price has suffered a significant fall over the last year, with the company not turning a profit over the last twelve months. However, analysts predict a return to profitability this year, potentially heralding a more positive outlook for the telecom giant.
These insights are part of the extensive range of tips and data available on InvestingPro, which offers an additional 11 tips for Lumen Technologies, Inc. (NYSE:LUMN) and real-time data for a multitude of other companies.
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