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.
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