Core Insights - Lumen reported $3.33 billion in revenue for Q4 2024, a year-over-year decline of 5.4%, but exceeded the Zacks Consensus Estimate by 3.36% [1] - The company's EPS for the quarter was $0.09, a significant increase of 212.50% compared to the consensus estimate of -$0.08 [1] Revenue Breakdown - Total Business Segment Revenue was $2.66 billion, surpassing the average estimate of $2.55 billion, but reflecting a year-over-year decline of 4.6% [4] - Total Mass Markets Revenue reached $670 million, slightly above the estimate of $669.32 million, marking an 8.1% decrease year-over-year [4] - Wholesale Business Segment Revenue was $716 million, exceeding the average estimate of $696.68 million, with a year-over-year decline of 3.4% [4] - International and Other Revenue totaled $92 million, slightly below the average estimate of $93 million [4] - Mid-Market Enterprise Revenue was $452 million, below the estimate of $469.47 million, reflecting a year-over-year decline of 7.9% [4] - Public Sector Revenue was $554 million, significantly above the estimate of $465.10 million, showing an 11.9% increase year-over-year [4] - Large Enterprise Revenue was $845 million, slightly below the estimate of $826.71 million, with a substantial year-over-year decline of 20.4% [4] Stock Performance - Lumen's shares have returned -16.3% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the financial schedules to the Company's accompanying earnings release. Reconciliation of information and additional non-GAAP historical financial measures that may be discussed during the call, along with further descriptions of non-GAAP financial measures, will be available in the Investor Relations portion of the company's website at http://ir.lumen.com. Non-GAAP measures are not presented to be replacemen ...

Core Insights - Lumen (LUMN) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, and showing an earnings surprise of 212.50% [1] - The company posted revenues of $3.33 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.36%, although this represents a decline from $3.52 billion in the same quarter last year [2] - Lumen has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $3.11 billion, and for the current fiscal year, it is -$0.94 on revenues of $12.31 billion [7] - The estimate revisions trend for Lumen is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Market Performance - Lumen shares have declined approximately 8.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The outlook for the industry, particularly the Technology Services sector, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [8]

Adjusted EBITDA and Adjusted EBITDA excluding Special Items for the fourth quarter and full year 2023 includes $14 million and $125 million, respectively, from the EMEA business (defined below), divested on Nov. 1, 2023 and $10 million and $56 million, respectively, from those of our Content Delivery Network ("CDN") customer contracts sold Oct. 10, 2023, which will not recur in subsequent periods. The net post-closing financial impact of actual amounts received or paid by the Company under its post-closing ...

Core Insights - Lumen Technologies made significant progress in strengthening its financial position and transforming corporate functions, aiming to support the AI economy in 2025 [2][7] - The company reported a net income of $85 million for Q4 2024, a substantial recovery from a net loss of $1.995 billion in Q4 2023, which included a non-cash goodwill impairment charge [7][23] - Lumen's total revenue for Q4 2024 was $3.329 billion, down 5% from $3.517 billion in Q4 2023, with a full-year revenue decline of 10% from $14.557 billion in 2023 to $13.108 billion in 2024 [23][37] Financial Performance - Adjusted EBITDA for Q4 2024 was $1.052 billion, a decrease of 4% from $1.099 billion in Q4 2023, while full-year Adjusted EBITDA fell 15% from $4.628 billion in 2023 to $3.939 billion in 2024 [7][37] - The company reported a negative free cash flow of $(174) million for Q4 2024, compared to a positive free cash flow of $50 million in Q4 2023 [25][37] - Lumen's capital expenditures for Q4 2024 were $915 million, an increase of 11% from $821 million in Q4 2023, with full-year capital expenditures rising from $3.100 billion in 2023 to $3.231 billion in 2024 [37][41] Business Segments - Revenue from the Large Enterprise segment was $845 million in Q4 2024, down 5% from $894 million in Q4 2023, while full-year revenue decreased 7% from $3.618 billion in 2023 to $3.379 billion in 2024 [6][19] - The Mid-Market Enterprise segment saw a 10% decline in Q4 2024 revenue to $452 million, and a full-year decrease of 8% to $1.887 billion [6][19] - Public Sector revenue increased by 11% in Q4 2024 to $554 million, with a 3% increase for the full year to $1.849 billion [6][19] Liquidity and Outlook - As of December 31, 2024, Lumen had cash and cash equivalents of $1.889 billion and plans to redeem approximately $202 million of unsecured senior notes by February 15, 2025 [26][38] - The company updated its financial outlook for 2025, projecting Adjusted EBITDA between $3.2 billion and $3.4 billion, and Free Cash Flow between $700 million and $900 million [27][28]

Core Viewpoint - Analysts forecast a quarterly loss of $0.08 per share for Lumen, indicating a significant year-over-year decline of 200% and expected revenues of $3.22 billion, down 8.4% from the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Revenue Projections - Analysts estimate 'Operating Revenues- Total Business Segment Revenue' to be $2.55 billion, reflecting an 8.5% decline from the prior-year quarter [4]. - 'Operating Revenues- Total Mass Markets Revenue' is projected at $669.32 million, indicating an 8.2% year-over-year decrease [4]. - 'Operating Revenues- Total Business Segment Revenue- Wholesale' is expected to reach $696.68 million, down 6% from the previous year [5]. - 'Large Enterprise- Total' revenue is anticipated at $826.71 million, showing a significant decline of 22.1% year-over-year [5]. - 'Public Sector- Total' revenue is projected at $465.10 million, reflecting a 6% decrease from the year-ago quarter [6]. - 'Fiber Broadband-Mass Markets Segment by Product Category' is expected to reach $196.85 million, indicating a year-over-year increase of 19.3% [6]. - 'Other Broadband-Mass Markets Segment by Product Category' is forecasted at $272.00 million, down 17.6% from the prior-year quarter [7]. - 'Voice and Other-Mass Markets Segment by Product Category' is estimated at $200.97 million, reflecting a 14.1% decline year-over-year [7]. - 'Mid-Market Enterprise- Total' is expected to be $469.47 million, indicating a 4.4% decrease from the previous year [7]. Stock Performance - Over the past month, Lumen shares have declined by 12.7%, contrasting with the Zacks S&P 500 composite's increase of 2.7%, suggesting that Lumen's performance may align with the overall market in the near future [8].

Lumen Technologies, Inc (LUMN) is scheduled to report fourth-quarter 2024 results on Feb. 4.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate for total revenues is pegged at $3.22 billion, indicating a fall of 8.4% from a year-ago reported number. The consensus estimate for earnings is currently pegged at a loss of 8 cents per share. In the year-ago quarter, LUMN reported earnings of 8 cents per share.The company missed the Zacks Consensus Estimate in two ...

Investors of Lumen Technologies (NYSE: LUMN ) suffered a lot over the last several years due to the previous management's strategic lapses. However, the new management's transformation initiatives look sound and the steps to deliver on the new AI-focusedWith a decade at a Big 4 audit firm specializing in the banking, mining, and energy sectors, I bring a strong foundation in finance and strategy. Currently, I serve as the Head of Finance for a leading owner and operator of retail real estate, where I overse ...

Stock Performance - Shares of Lumen Technologies (LUMN) gained 3 8% as of 1 50 p m ET and were up as much as 5 7% earlier in the day [1] - The stock's rise occurred while the S&P 500 and Nasdaq Composite lost 0 3% and 0 5% respectively [1] Project Stargate Announcement - President Trump announced Project Stargate a $500 billion private investment initiative focused on building American AI infrastructure [2] - SoftBank is a major contributor to the project [2] Lumen's Role in AI Infrastructure - Lumen's technology facilitates rapid communication in AI data centers [3] - The company has inked key deals with Meta and Microsoft this year [3] - Microsoft may be one of the first to receive Project Stargate funding due to its relationship with OpenAI [3] Industry Optimism - The AI sector is experiencing a general sense of optimism following the rollback of Biden-era regulations [3] Lumen's Financial Performance - Lumen's revenue has shrunk from $21 5 billion in 2019 to $14 6 billion last year [4] - The company has repeatedly missed earnings targets and failed to consistently turn a profit or grow revenues [4] Future Outlook - Despite the enthusiasm surrounding Project Stargate Lumen's future remains unclear [4]

Stock Performance - Lumen Technologies stock surged 6 3% as of 3 20 p m ET, outperforming the S&P 500 (up 0 7%) and Nasdaq Composite (up 1 3%) [1] - Earlier in the session, the stock had been up as much as 11 3% [1] AI Infrastructure Investment - OpenAI, Oracle, and Softbank announced a joint venture called Stargate, planning to invest up to $500 billion in US data centers over the next four years [2][3] - The initial investment for Stargate is $100 billion to build domestic data centers, with potential spending reaching $500 billion within Trump's term [3] Strategic Partnerships - Lumen secured major data center partnerships with Microsoft and Meta Platforms in the second half of last year [4] - The company's private connectivity fabric (PCF) solutions are already being used by Microsoft and Meta, the two largest spenders on AI infrastructure [5] Future Prospects - The Stargate venture could potentially benefit Lumen, as the company may seek similar PCF hardware and services used by Microsoft and Meta [5] - Lumen is experiencing strong demand in the AI category, which could help improve earnings and reduce its large debt load [6]