NEW YORK – Lumen Applied sciences, Inc. (NYSE: LUMN) reported third quarter income that beat analyst expectations, sending its shares up 7.68% in after-hours buying and selling on Tuesday.

The telecommunications firm posted income of $3.22 billion for the quarter, surpassing the consensus estimate of $3.21 billion. Nonetheless, Lumen reported an adjusted loss per share of $0.13, which was worse than analysts’ expectations for a lack of $0.09 per share.

“The largest technology companies in the world are choosing Lumen to help build the backbone for the AI economy. What’s more, enterprises are recognizing that every AI strategy needs a network strategy, and they’re coming to Lumen for help,” mentioned Kate Johnson, president and CEO of Lumen Applied sciences.

Lumen’s whole income declined 12% YoY, primarily because of the divestiture of its EMEA enterprise in November 2023. The corporate’s North America Enterprise section income fell 7% YoY to $2.44 billion.

Mass Markets section income dropped 7% YoY to $685 million. Nonetheless, Lumen reported a document quarter for internet subscription provides in its Quantum (NASDAQ:) Fiber enterprise.

The corporate generated free money circulation of $1.2 billion in Q3, excluding particular objects. This was a big enchancment from $43 million in the identical interval final 12 months.

Lumen up to date its full-year 2024 outlook, elevating its free money circulation steerage to $1.2-$1.4 billion from the earlier vary of $1.0-$1.2 billion. The corporate maintained its adjusted EBITDA forecast of $3.9-$4.0 billion.

Regardless of the income beat, Lumen continues to face challenges because it transforms its enterprise. The corporate’s internet loss widened to $148 million in Q3 from $78 million a 12 months in the past.

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