Table of Contents
Lumen Technologies (NYSE: LUMN) The stock rose again in Wednesday’s trading. Telecom’s share price ended the daily session up 32.6%, according to data from S&P global market information. Shares were up as much as 56.6% earlier in the day.
Lumen reported mixed second-quarter results after the market closed yesterday, but the company issued very encouraging guidance. In addition to the promising new forecast, the stock also got a boost from a wave of bullish reporting from analysts.
Lumen misses profit, but exceeds sales in the second quarter
Lumen registered a non-GAAP (adjusted) loss per share of $0.13 on revenue of $3.27 billion in the second quarter. By comparison, the average Wall Street target would require the company to post an adjusted loss of $0.04 per share on revenue of $3.25 billion.
The company’s revenue fell 10.7% year-over-year in the quarter, and the company turned a loss after posting a profit of $0.10 per share in the second quarter of last year. While the second quarter report didn’t show many signs of an immediate reversal in momentum, investors were very optimistic about management’s prospects.
The lumen supply is on fire
With its Q2 report, Lumen raised its full-year free cash flow (FCF) target to between $1 billion and $1.2 billion. Previously, the company had expected FCF to be between $100 million and $300 million.
Along with the huge increase in Lumen’s FCF target, investors are excited by the commentary surrounding new fiber deals for the company. Ahead of the earnings release, Lumen announced that it had recently won new fiber contracts worth about $5 billion – and that another $7 billion of deals may be in the pipeline. Comments from management during the company’s conference call continued to support the bullish view on the fiber front.
Lumen received a lot of positive coverage from Wall Street analysts following the report, further boosting its momentum. The company’s share price is now up 549.5% in the past month.
Should You Invest $1,000 in Lumen Technologies Now?
Consider the following before purchasing shares in Lumen Technologies:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Lumen Technologies wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $638,800!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. The Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.
*Stock Advisor returns August 6, 2024
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has one disclosure policy.
Why Lumen Stock Skyrocketed Again Today was originally published by The Motley Fool