Lumen's Private Connectivity Fabric℠ enables long-term network capacity for Meta's AI DENVER, Oct. 21, 2024 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) and Meta are partnering to significantly increase Meta's network capacity and help drive its bold AI ambitions. The expanded network will provide dedicated interconnection for Meta's industry-leading infrastructure, strengthening and increasing the company's ability to lead in AI development. This increase in capability is another differentiator that wil ...

Assuming it does not get bought out, Lumen now has a tremendous opportunity. Three months ago, if you asked investors where telco Lumen Technologies (LUMN 0.78%) would be in five years, they might have argued about whether it would exist at all. Heavily indebted and priced like a stock headed into bankruptcy, most investors had lost faith in the company. Perceptions changed in late July when it announced a partnership with Microsoft to connect its data centers and expand its network capacity. Lumen has sinc ...

DENVER, Oct. 7, 2024 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN), a global integrated network solutions provider that unleashes the world's digital potential, will release its third quarter 2024 results on Nov. 5, 2024. The company will broadcast a live conference call on its Investor Relations website at http://ir.lumen.com at 5 p.m. ET. Additional information regarding the third quarter 2024 results, including the company's earnings release, investor presentation, and related materials will be availab ...

Core Viewpoint - Lumen Technologies has experienced a significant stock increase of 374% over the past year, primarily driven by a new AI infrastructure deal with Microsoft, despite a history of declining revenues and losses [2][6]. Company Overview - Lumen Technologies, formerly known as CenturyLink, is one of the largest wireline service providers in the U.S. and has focused on expanding its wireline business through mergers and acquisitions rather than entering the wireless market [2][4]. - The company has faced a decline in annual revenue for five consecutive years, with total revenue dropping from $20.71 billion in 2020 to $14.56 billion in 2023, reflecting a revenue growth decline of 17% in 2023 [5]. Financial Performance - Lumen's adjusted EBITDA margins have decreased from 41.8% in 2020 to 31.8% in 2023, and the company reported a net loss of $10.30 billion in 2023 [5][6]. - The company is expected to generate $5 billion in new contracts related to the AI connectivity market and is in discussions for an additional $7 billion in sales opportunities [7]. Future Outlook - Analysts predict Lumen's revenue will decline to $13 billion in 2024 and further to $12.4 billion in 2025, with expectations of a gradual recovery as the macro environment improves and AI contracts contribute to revenue [8]. - Lumen plans to accelerate spending to fulfill new AI data center deals, anticipating adjusted EBITDA to decline to between $3.9 billion and $4 billion in 2024 [9]. - The company has $18.4 billion in long-term debt and a debt-to-equity ratio of 70, but expects free cash flow to improve from negative $878 million in 2023 to a positive range of $1 to $1.2 billion in 2024 [10]. Market Position - Lumen's enterprise value stands at $23.4 billion, trading at 1.8 times this year's sales and 6 times its adjusted EBITDA, which is significantly lower than peers like AT&T and Verizon [11]. - The stock's future performance is likely to be influenced by developments in its AI-oriented businesses and the overall AI market, with potential for limited downside due to investor optimism but also capped upside due to ongoing losses and high debt levels [13].

A Buy-rated article on Lumen Technologies, Inc. (NYSE: LUMN ) was one of my first ones here at Seeking Alpha. It is definitely my best recommendation so far as an SA Author, since the Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my investment decisions. ...

DENVER, Sept. 17, 2024 /PRNewswire/ -- Lumen Technologies, Inc. (NYSE: LUMN) ("Lumen") announced the early results of its offers to exchange newly-issued secured notes for certain of its outstanding unsecured senior notes. In addition, Lumen also announced the early results of the offers by Level 3 Financing, Inc., its indirect, wholly-owned subsidiary ("Level 3" and, together with Lumen, the "Issuers"), to exchange newly-issued second lien notes for certain of its outstanding unsecured senior notes. Lumen ...

Lumen Technologies (LUMN) has seen its stock price skyrocket 362% in the past three months. This meteoric rise has undoubtedly caught the attention of investors, prompting questions about whether to capitalize on gains or maintain a long-term investment stance. Image Source: Zacks Investment Research Closing at $5.68 as of yesterday's trading session, LUMN stock is currently trading 27.5% below its 52-week high of $7.83, attained on Aug. 7, 2024. Technical indicators are supportive of Lumen's strong perform ...

Summary of Lumen Technologies Conference Call Company Overview - **Company**: Lumen Technologies, Inc. (NYSE:LUMN) - **Event**: Goldman Sachs Communacopia and Technology Conference Call - **Date**: September 9, 2024 Key Industry Insights - **AI Integration**: Lumen is leveraging AI to enhance operational efficiency and productivity, being a launch partner with Microsoft Copilot and integrating AI into their data center operations [4][3] - **Data Center Demand**: The demand for data centers is driven by the need for training large AI algorithms, with Lumen positioned to provide the necessary connectivity [5][14] - **Competitive Landscape**: Lumen's unique infrastructure, including a vast network of conduits for rapid fiber deployment, gives it a competitive edge in the enterprise telecom space [8][30] Core Business Developments - **Customer Base**: Lumen's customers include hyperscalers, large tech firms, and cloud providers focused on AI training, indicating a diverse and robust customer portfolio [13][12] - **Contract Value**: The company has secured a $5 billion deal with over 10 customers, with potential for an additional $7 billion in opportunities, primarily in the AI sector [10][11] - **Long-term Contracts**: The deals are structured as long-term contracts, typically spanning 20 years, with significant upfront cash inflows [22][19] Financial Performance and Projections - **Cash Flow Dynamics**: The majority of cash from these deals is received upfront, with a significant portion allocated to capital expenditures over the first 3-4 years [22][23] - **EBITDA Guidance**: Lumen anticipates a decline in EBITDA for 2025 due to investment costs but expects stabilization and growth in 2026 and beyond [25][31] - **Cost-Cutting Measures**: The company has announced $1 billion in cost-cutting actions, which are expected to contribute to EBITDA stability and growth in the coming years [45][46] Strategic Focus Areas - **Enterprise vs. Consumer**: Lumen is focusing on its enterprise business, indicating that the consumer segment does not align with its long-term strategy [40][51] - **Market Positioning**: The company is not currently considering a stock sale, emphasizing execution of its strategic initiatives as the priority [51][52] - **Future Growth**: Lumen is positioned to capitalize on the growing demand for AI and data connectivity, with plans to enhance its fiber network capabilities [28][27] Additional Considerations - **Legacy Business Challenges**: The company is facing challenges from legacy declines in the telecom industry, which are impacting overall performance [32][36] - **Sales Strategy**: Lumen is enhancing its sales strategy to better capture market share in the mid-market and SMB segments, which have been historically underdeveloped [38][37] - **Infrastructure Investment**: Ongoing investments in fiber infrastructure are critical for supporting future growth and meeting customer demands [43][44] This summary encapsulates the key points discussed during the conference call, highlighting Lumen Technologies' strategic direction, financial outlook, and market positioning within the telecom industry.

Lumen Technologies, Inc. (NYSE:LUMN) Bank of America's 2024 Media, Communications and Entertainment Conference September 5, 2024 8:50 AM ET Company Participants Chris Stansbury - EVP and CFO Conference Call Participants Dave Barden - Bank of America Merrill Lynch Dave Barden All right. So guys, everybody, welcome to round two. Thanks for joining. I'm Dave Barden. I head up telecom infrastructure research for the U.S. and Canada for the bank. I'm really pleased, again, to have Chris Stansbury back in the Oct ...

Core Viewpoint - Lumen Technologies is focused on transforming the enterprise telecom space by investing in innovative solutions that leverage their extensive network to support the growing demands of AI and digital services [3][19]. Company Strategy - The company aims to capitalize on the lack of innovation in the telecom sector, positioning itself to provide high-speed, low-latency connectivity essential for AI and cloud services [3][19]. - Lumen has secured $5 billion in contracts with over 10 customers, primarily hyperscalers, to support the AI ecosystem, indicating strong demand for its services [8][25]. Financial Performance - Approximately 60% of Lumen's revenue is derived from declining legacy services, with a focus on transitioning to growth areas such as dark fiber and digital services [5][6]. - The company has invested in 6 million fiber miles, with plans for an additional 6 million, to enhance its network capabilities [6]. Market Opportunities - Lumen identifies a total addressable market (TAM) of at least $50 billion related to connectivity for AI, with three phases of growth: training, inference, and machine-to-machine communication [7][19]. - The public sector is highlighted as a growth area, with significant contracts already in place, such as with USDA and USPS [11]. Operational Efficiency - The company is working to unify its four legacy networks, which is expected to drive down operational costs and improve service delivery [15][32]. - Lumen's conduit-based infrastructure allows for rapid deployment of fiber without extensive digging, enhancing scalability and efficiency [8][9]. Customer Engagement - Lumen is enhancing its partner ecosystem to improve sales in mid-market segments, recognizing the need for a more efficient sales approach [20][21]. - The company is focused on improving customer experience and reducing technical debt to drive better financial outcomes [17][18]. Future Outlook - Lumen anticipates a recovery in EBITDA by 2026, with revenue growth expected to follow thereafter as legacy declines stabilize [18]. - The company is optimistic about its ability to execute on the $7 billion opportunity, with strong demand for its services continuing [11][19].