Lumen Technologies stock sinks after full-year revenue outlook was below expectations, while FCF view affirmed
Shares of Lumen Technologies Inc. (LUMN) slumped 5.0% in afternoon trading Monday, after the telecommunications network provider provided a full-year revenue outlook that was below expectations. As part of its Investor Day presentation, the company said it expects 2023 revenue of approximately $14.2 billion, which would be down about 19% from a year ago and below the current FactSet consensus of $14.65 billion. Meanwhile, the company reiterated its previously provided guidance for free cash flow (FCF) of zero to $200 million and said it expects adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of approximately $4.7 billion, compared with previous guidance of $4.6 billion to $4.8 billion. The stock, which is hovering just above the 37-year closing low of $1.88 seen on May 25, has tumbled 63.4% year to date, while the Communications Services Select Sector SPDR exchange-traded fund (XLC) has soared 31.9% and the S&P 500 has gained 11.3%.
-Tomi Kilgore
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June 05, 2023 15:17 ET (19:17 GMT)
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