Lumen Technologies (NYSE: LUMN) Shares of the telecommunications company soared again on Wednesday. The stock price of the telecommunications company ended the daily session up 32.6%, according to data from S&P Global Markets InsightsShares had risen as much as 56.6% earlier in the day.
Lumen reported mixed results for the second quarter after the market closed yesterday, but the company did issue very encouraging guidance. In addition to this promising new guidance, the stock has also received some bullish coverage from analysts.
Lumen does not publish results, but reports higher sales in the second quarter
Lumen recorded a non-GAAP (adjusted) loss per share of $0.13 on revenue of $3.27 billion in the second quarter. For comparison, the average Wall Street target was for the company to post an adjusted loss of $0.04 per share on revenue of $3.25 billion.
The company’s sales fell 10.7% year over year in the quarter, and the company swung to a loss after posting a profit of $0.10 per share in the second quarter of last year. While there weren’t many signs of an immediate turnaround in momentum in the second-quarter report, investors were very optimistic about management’s guidance.
Lumen stock is on fire
With its second-quarter report, Lumen raised its full-year free cash flow (FCF) guidance to between $1 billion and $1.2 billion. Previously, the company had expected FCF to be between $100 million and $300 million.
In addition to Lumen’s significant increase in free cash flow guidance, investors are excited by comments surrounding the company’s new fiber contracts. Ahead of the earnings release, Lumen announced that it had recently secured approximately $5 billion in new fiber contracts — and that it could have an additional $7 billion in contracts in the pipeline. Management’s comments during the company’s conference call continued to support an optimistic outlook on the fiber front.
Lumen received positive media coverage from Wall Street analysts following the report, which helped further bolster the bullish momentum. The company’s stock price is now up 549.5% over the past month.
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