Lumen Technologies Reports Strong Q3 Revenue

NEW YORK – Lumen Technologies, Inc. (NYSE: LUMN) reported third quarter revenue that beat analyst expectations, sending its shares up 7.68% in after-hours trading on Tuesday.

The telecommunications company posted revenue of $3.22 billion for the quarter, surpassing the consensus estimate of $3.21 billion. However, Lumen reported an adjusted loss per share of $0.13, which was worse than analysts' expectations for a loss of $0.09 per share.

> "The largest technology companies in the world are choosing Lumen to help build the backbone for the AI economy. What's more, enterprises are recognizing that every AI strategy needs a network strategy, and they're coming to Lumen for help," said Kate Johnson, president and CEO of Lumen Technologies.

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

Mass Markets segment revenue dropped 7% YoY to $685 million. However, Lumen reported a record quarter for net subscription adds in its Quantum (NASDAQ:QMCO) Fiber business.

The company generated free cash flow of $1.2 billion in Q3, excluding special items. This was a significant improvement from $43 million in the same period last year.

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

Despite the revenue beat, Lumen continues to face challenges as it transforms its business. The company's net loss widened to $148 million in Q3 from $78 million a year ago.

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