(Reuters) -Telecommunications agency Lumen Applied sciences sharply raised its expectations for annual free money circulation on Tuesday as AI increase drives progress, serving to its shares add one other 66% in prolonged buying and selling after practically doubling in common session.
Lumen is seeing sturdy demand for its high-capacity fiber, which allows safe digital connections for knowledge facilities supporting AI ventures.
On Monday, the corporate mentioned it had signed offers value $5 billion with cloud and tech prospects together with Microsoft (NASDAQ:) and is at present in talks with shoppers to safe extra contracts value $7 billion.
Lumen’s inventory, which had declined about 65% in 2023, has rebounded following a deal signed in January with a gaggle of lenders that prolonged its debt maturities to at the very least 2029.
The corporate raised its annual free money circulation forecast to between $1 billion and $1.2 billion from between $100 million and $300 million.
The Monroe, Louisiana-based firm reported income of $3.27 billion within the second quarter, in contrast with estimates of $3.25 billion, based on LSEG knowledge.
Excluding gadgets, it posted a lack of 13 cents per share, in comparison with a revenue of 10 cents per share in the identical interval final yr, as curiosity bills jumped 27% to $373 million within the second quarter.
