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]

DENVER, Jan. 14, 2025 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN), a global integrated network solutions provider that unleashes the world's digital potential, will publish its fourth-quarter financial results following market close on Feb. 4, 2025. A live broadcast of the earnings conference call will be available on the company's Investor Relations page at 5 p.m. ET. Additional information regarding the fourth quarter and fiscal year 2024 financial highlights, including the company's earnings release, ...

Price Performance - LUMN stock closed at $5 36, trading 48 1% below its 52-week high of $10 33 [2] - The stock has experienced a sharp rally of 237% over the past year but is now showing signs of volatility [2] - LUMN shares have slipped 13 7% in the past month compared to the S&P 500's decline of 4 1% and the sub-industry's decline of 8 5% [17] Financial Performance and Guidance - LUMN expects 2025 EBITDA to be below 2024 levels due to transformation costs and higher startup costs for PCF sales [3] - The company anticipates a significant EBITDA rebound in 2026 and growth thereafter [3] - LUMN raised its 2024 free cash flow guidance to $1 2-$1 4 billion from the previous range of $1-$1 2 billion [8] - For 2024, LUMN expects adjusted EBITDA in the range of $3 9-$4 billion and capital expenditures between $3 1 billion and $3 3 billion [19] Debt and Cost Management - LUMN has a significant debt load with $18 142 billion in long-term debt as of Sept 30, 2024, compared to $18 411 billion as of June 30, 2024 [4] - The company is targeting $1 billion in cost savings by the end of 2027 through infrastructure simplification and product portfolio reduction [12] Business Developments - LUMN has secured $3 billion in incremental PCF deals, bringing the total to $8 billion in new PCF sales since June 2024 [7] - The company has inked deals with tech giants like Microsoft, Amazon, Google Cloud, and Meta Platforms to provide network capabilities for AI innovation [8] - LUMN added 43,000 Quantum Fiber subscribers, reaching a total of 1 million in the reported quarter [11] - The company added 131,000 Fiber broadband-enabled locations in Q3 2024, with a total of 4 million enabled locations as of Sept 30, 2024 [11] Market Sentiment and Valuation - LUMN is trading below its 50-day and 100-day moving averages, indicating a bearish sentiment among analysts [6][15] - The stock is trading at a trailing 12-month price-to-sales ratio of 0 4, significantly below the industry average of 9 71 [13] Challenges and Risks - LUMN's total revenues declined 11 5% year over year to $3,211 million in Q3 2024 due to divestitures and the sale of the CDN business [18] - The company continues to face weakness in its legacy business, which is expected to strain top-line expansion in the near term [18] - Incremental costs from expanding new business, particularly PCF sales, are expected to pressure margins [19]

Lumen Technologies, Inc (LUMN) is looking to offload the consumer fiber business as the company phases out its legacy mass markets business and strives to reduce debt load, according to a report from Reuters. Citing sources familiar with the matter, Reuters added that Lumen has sought assistance from Goldman Sachs to understand interest from potential buyers (including the company’s rivals) for its fiber unit. Further, LUMN might just sell a stake or get into a joint venture deal with a partner.Citing sourc ...

Lumen Technologies, Inc. (LUMN) and Prometheus Hyperscale have collaborated to enhance connectivity for its energy-efficient data centers. This partnership addresses the surging demand for artificial intelligence (AI), big data and cloud computing while tackling environmental challenges within the AI industry. It underscores a shared commitment to innovation and environmental responsibility, setting a benchmark for the future of AI-driven data centers.Prometheus Hyperscale is implementing Lumen's Private Co ...

Lumen® Private Connectivity Fabric℠ will expand Prometheus' network capacity across its growing data center footprintDENVER, Dec. 17, 2024 /PRNewswire/ -- Prometheus Hyperscale has chosen Lumen Technologies (NYSE: LUMN) to connect its energy-efficient data centers to meet growing AI data demands. Lumen network services will help Prometheus with the rapid growth in AI, big data, and cloud computing as they address the critical environmental challenges faced by the AI industry. Rendering of Prometheus Hyp ...

Lumen Technologies, Inc’s (LUMN) shares have surged 240.9% year to date (“YTD”), outpacing the S&P 500 composite and sub-industry’s growth of 27.3% and 57.3%, respectively.YTD Price PerformanceImage Source: Zacks Investment ResearchClosing at $6.23 as of yesterday’s trading session, LUMN stock is currently trading 39.7% below its 52-week high of $10.33 attained on Nov. 11, 2024.Lumen is a global communications services provider which operates one of the most interconnected networks globally. LUMN stock has ...

Lumen Technologies, Inc. (NYSE:LUMN) Bank of America Securities 2024 Leveraged Finance Conference Call December 3, 2024 10:10 AM ET Company Participants Chris Stansbury - Executive Vice President & Chief Financial Officer Conference Call Participants Ana Goshko - Bank of America Ana Goshko Joining us at the Bank of America Leverage Finance Conference. I'm Ana Goshko from the fixed income research side, I cover Telecom and Technology. And we're thrilled to have Lumen Technologies with us. Chris Stansbury, th ...