"Concerns about the prospects for Lumen Technologies Inc. ( NYSE: LUMN) have lingered. However, recent quarterly results suggest a positive shift in its financial health, driven by a focus on strengthening its balance sheet and improving liquidity through debt reduction. The global telecommunications company has also focused on improving customer satisfaction. Yet, it still faces challenges with declining revenue and with free cash flow."
"The Louisiana-based company has been around a long time, so it was a surprise to some when the stock was at risk of being delisted from the New York Stock Exchange in 2023, after its price per share briefly dipped below $1.00. Those struggles continued into 2024, but by mid-summer, the stock surged as demand for its high-speed fiber-network solutions began to grow."
"More recently, Lumen partnered with IBM to unlock scalable AI for businesses and with Google Cloud to provide advanced cloud and network solutions to meet the growing demands of AI workloads. Lumen strengthened its financial position and freed up capital for long-term growth by refinancing its term loans and selling its fiber-to-the-home business to AT&T. CEO Kate Johnson projected the company's return to growth by 2029."
Lumen Technologies has recent quarterly results showing improved financial health due to debt reduction and stronger liquidity. The company focused on strengthening its balance sheet and improving customer satisfaction. Revenue and free cash flow continue to decline. The stock briefly dipped below $1.00 in 2023 and risked NYSE delisting, then surged mid-2024 as demand for high-speed fiber solutions grew. Major deals with Microsoft, IBM, and Google Cloud target increased connectivity for AI workloads. Refinancing term loans and selling its fiber-to-the-home business to AT&T freed capital. CEO Kate Johnson projects growth resumption by 2029.
Read at 24/7 Wall St.
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