Lumen Technologies reported its fourth-quarter 2024 earnings on February 4th, showcasing a notable financial turnaround that has caught the attention of investors. The telecommunications company posted a net income of $85 million, a significant improvement from the $1.995 billion net loss in the same quarter of the previous year. This positive shift was largely attributed to the absence of a $1.9 billion non-cash goodwill impairment charge that had weighed on last year's results. Lumen's earnings per share (EPS) came in at $0.09, surpassing analyst expectations of a -$0.02 EPS, while revenue reached $3.329 billion, exceeding the forecasted $3.199 billion despite a 5% year-over-year decline.
The company's strategic focus on enterprise services, which now account for approximately 75% of its revenue, has been pivotal in its financial recovery. Lumen's adjusted EBITDA for the quarter was $1.052 billion, slightly down from $1.099 billion in the previous year, but still reflecting a solid operational performance. The company also reported a strengthened balance sheet with cash and cash equivalents totaling $1.889 billion as of the end of 2024, highlighting its improved liquidity position.
Lumen Technologies' stock closed at $5.04 on February 4th, marking a 3.49% increase from the previous day's close of $4.87. After the market closed, the stock continued to rise, reaching $5.4999, a 9.13% increase.