Lumen Technologies (LUMN) stock surged 10.32% in the last 24 hours on Tuesday, following the release of its better-than-expected fourth-quarter 2024 results and an upbeat outlook for 2025.
According to the movement_type="24h Soar" movement_pct="10.32%" movement_stock_code="LUMN" movement_stock_name="Lumen Technologies" movement_time="2025-02-04 21:32:20" movement_week_day="TUESDAY", the telecom company's shares soared on Tuesday, driven by its strong Q4 performance and solid guidance for the upcoming year.
For the fourth quarter, Lumen reported revenue of $3.33 billion, beating analysts' estimates of $3.20 billion by 4.04%. Its adjusted earnings per share of $0.09 also significantly surpassed the consensus estimate of a loss of $0.05 per share. The company's Q4 performance was driven by robust demand for its data centers amid the AI boom, securing deals worth over $8 billion with major cloud and tech companies for its networking solutions.
Looking ahead, Lumen provided a solid outlook for 2025, projecting adjusted EBITDA in the range of $3.2 billion to $3.4 billion and free cash flow of $700 million to $900 million. The company's strong free cash flow guidance was particularly well-received by investors, indicating Lumen's ability to generate substantial cash flows to service its debt and fund growth initiatives.
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