Lumen Technologies (LUMN) shares surged 5.12% in after-hours trading on November 5, 2024, after the company reported better-than-expected third-quarter results and raised its full-year guidance, driven by strong demand for its AI and cloud services.
The fiber optic network provider posted an adjusted loss of $0.13 per share in Q3, wider than analysts' estimates of a $0.09 loss per share. However, revenue of $3.22 billion topped expectations of $3.21 billion. The solid top-line performance was driven by robust demand for Lumen's AI capabilities and data center connectivity services from tech giants like Google and Microsoft.
During the quarter, Lumen announced a partnership with Google Cloud to power AI operations and proactive data insights across its network, leveraging the latter's infrastructure and analytics platform. The company also secured over $3.5 billion in new business from its private connectivity fabric, including deals to expand Google's network capabilities.
Buoyed by the strong AI tailwinds, Lumen raised its full-year free cash flow guidance to a range of $1.2 billion to $1.4 billion, up from its previous outlook of $1.0 billion to $1.2 billion. The company maintained its adjusted EBITDA forecast of $3.9 billion to $4.0 billion.
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