Lumen Technologies faces significant challenges as shares plummet and creditor deal is reached
- Lumen Technologies shares drop 25% after 3Q loss
- Company reaches new deal with creditors
- Revises plans for fiber buildout
- Stock falls to $1.10 in morning trading
- Shares down almost 79% this year
- Third-quarter loss of $78 million
- Adjusted loss of 9 cents a share
- Revenue slips about 17% to $3.64 billion
- Lumen receives $1.2 billion in fresh financing
- Interest costs to increase sooner than expected
- Company scales back consumer-facing fiber buildout
- Focus on driving penetration and average revenue per user
- Investments now focused on enterprise fiber business
- Cost-cutting measures include reducing workforce by about 4%
Shares of Lumen Technologies have experienced a significant drop of 25% following the company’s third-quarter loss. In addition to the loss, Lumen has reached a new deal with its creditors and has revised its plans for its fiber buildout. The stock fell to $1.10 in morning trading, marking a decline of almost 79% for the year. The company reported a third-quarter loss of $78 million, or 8 cents a share, compared to a profit of $578 million, or 57 cents a share, in the same period last year. The adjusted loss of 9 cents a share was below analysts’ expectations. Despite the loss, revenue slipped about 17% to $3.64 billion, which exceeded analysts’ expectations. Lumen also secured $1.2 billion in fresh financing through its deal with a group of creditors. However, the deal also means that interest costs will increase sooner than initially forecasted. As a result, Lumen will scale back its plans for the consumer-facing fiber-to-the-home network and instead focus on driving penetration and average revenue per user. The company is now directing its investments towards its enterprise fiber business. To cut costs, Lumen will reduce its workforce by approximately 4%.
Factuality Level: 7
Factuality Justification: The article provides factual information about Lumen Technologies reporting a third-quarter loss, reaching a new deal with its creditors, and revising plans for its fiber buildout. It also includes quotes from the company’s Chief Financial Officer and Chief Executive. However, the article lacks in-depth analysis and context, and it does not provide a comprehensive view of the company’s financial situation or the reasons behind its loss. Additionally, the article does not provide any opposing viewpoints or expert opinions to provide a balanced perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Lumen Technologies’ financial performance, including its third-quarter loss, revised plans for its fiber buildout, and a new deal with creditors. It also mentions the stock price decline and the company’s cost-cutting measures. However, the article lacks in-depth analysis, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Lumen Technologies
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial performance of Lumen Technologies, including its third-quarter loss, revised plans for its fiber buildout, and a new deal with creditors. There is no mention of an extreme event.
Public Companies: Lumen Technologies (LUMN), Quantum Fiber (), CenturyLink ()
Key People: Chris Stansbury (Chief Financial Officer), Kate Johnson (Chief Executive)
Reported publicly:
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