Core Viewpoint - Lumen Technologies, Inc. is facing challenges following the sale of its Mass Markets fiber-to-the-home business to AT&T, which has impacted its financial outlook and growth trajectory [2][3]. Group 1: Financial Performance and Ratings - Citi has reduced its price target for Lumen Technologies from $11 to $10 while maintaining a Neutral rating, citing mixed fourth-quarter results [1]. - Raymond James downgraded Lumen's rating from Outperform to Market Perform after the sale of its fiber business for $5.75 billion, which significantly reduced total debt by over $4.8 billion and net leverage to below 4x [2]. Group 2: Strategic Challenges - Following the completion of the sale, Lumen Technologies is restructuring its balance sheet but faces new challenges, particularly regarding its revenue growth, which may take about two years to recover [3]. - The appointment of the third head of sales in three years raises concerns about the company's ability to restore growth effectively [3]. Group 3: Company Overview - Lumen Technologies, Inc. is an American telecommunications and technology company that provides networking, edge cloud, collaboration, and cybersecurity solutions [4].

Lumen Technologies Inc. (NYSE: LUMN) net income losses have been enormous, but there is a different story emerging that could suggest a turnaround of the company's income statement. ...

Core Insights - The artificial intelligence (AI) infrastructure segment is expected to maintain strong momentum in 2026, driven by robust demand, despite concerns over the high valuations of major AI companies [2][3]. Company Summaries Calix Inc. (CALX) - Calix reported adjusted earnings of $0.39 per share for Q4 2025, exceeding the Zacks Consensus Estimate of $0.38, and significantly up from $0.08 per share a year ago [4]. - Quarterly revenues reached $272.45 million, surpassing the Zacks Consensus Estimate by 0.90% [4]. - The company has integrated AI into its cloud platform to enhance operations and service delivery for broadband providers, with major clients including Lumen Technologies and Verizon [6]. - Calix's expected revenue and earnings growth rates for the current year are 15.6% and 41.5%, respectively, with a 4.9% improvement in the earnings estimate over the last 30 days [7]. Teradata Corp. (TDC) - Teradata reported adjusted earnings of $0.74 per share for Q4 2025, beating the Zacks Consensus Estimate of $0.55, and up from $0.53 per share a year ago [8]. - Total revenues were $421 million, exceeding the Zacks Consensus Estimate by 6.52% [8]. - The company is expected to benefit from improved annual recurring revenue (ARR) growth, cost savings, and productivity measures, which will drive free cash flow [9]. - Teradata's innovative AI capabilities and new product rollouts are anticipated to enhance its analytics offerings and drive long-term growth [10][12]. - The expected revenue and earnings growth rates for Teradata are -2.1% and -3.9%, respectively, with a 0.4% improvement in the earnings estimate over the last 90 days [13]. Lumen Technologies Inc. (LUMN) - Lumen reported adjusted earnings of $0.23 per share for Q4 2025, contrasting with a loss of $0.21 per share as per the Zacks Consensus Estimate, and an adjusted loss of $0.09 per share in the prior year [14]. - Total revenues were $3.041 billion, down 8.7% year over year, and missed the Zacks Consensus Estimate by 1.4% [14]. - The company is focusing on AI-driven solutions, securing $13 billion in Private Connectivity Fabric (PCF) deals by the end of 2025, with revenues of $41 million and $116 million recognized in Q4 and full-year 2025, respectively [15][16]. - Lumen's active customers for its network-as-a-service (NaaS) platform grew by 29% quarter over quarter, indicating strong demand for its services [17]. - The expected revenue and earnings growth rates for Lumen are -12.4% and 15.4%, respectively, with a significant improvement in the earnings estimate of over 100% in the last seven days [18].

Key Takeaways CALX beat Q4 estimates with EPS of $0.39 on $272.45M in revenues.TDC topped Q4 forecasts as AI-driven data workloads and new tools fuel growth plans.LUMN secured $13B in AI-linked PCF deals, boosting NaaS demand and customer growth. The momentum of the artificial intelligence (AI) infrastructure segment is likely to continue in 2026. The AI space remains rock solid supported by an extremely bullish demand scenario. A section of financial experts and analysts is concerned about the highly overs ...

Lumen CEO Johnson Sparks 30% Rally With $500,000 Share Purchase - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Lumen CEO Johnson Sparks 30% Rally With $500,000 Share PurchaseBy [Ian Salisbury]ShareResize---ReprintsIn this article[LUMN][MSF ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Lumen (LUMN) Stock Analysis - Lumen (LUMN) has shown a four-week price change of 1.9%, indicating growing investor interest and positioning it well for momentum investing [4] - Over the past 12 weeks, LUMN gained 0.9%, and its beta of 1.51 suggests it moves 51% more than the market, indicating strong momentum [5] - LUMN has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential success [6] Group 3: Earnings Estimates and Valuation - LUMN's upward trend in earnings estimate revisions has earned it a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects as analysts raise earnings estimates [7] - The stock is trading at a Price-to-Sales ratio of 0.67, indicating it is relatively cheap, as investors pay only 67 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides LUMN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]

Investment Rating - The report maintains a positive outlook on the communication equipment and services industry, particularly focusing on investment opportunities in CPO and related supply chain companies [3][11]. Core Insights - North American cloud vendors have reported better-than-expected earnings, with significant capital expenditure guidance increases from major players like Google and Amazon, indicating strong growth in the AI computing industry chain [3][11]. - The report highlights the rapid growth of the optical communication industry driven by AI applications, with leading companies achieving record highs in stock performance [6][9]. - The transition from Scale-OUT to Scale-UP in optical applications is emphasized, suggesting a broadening of application scenarios and increased demand for optical modules and components [6][9]. Summary by Sections Weekly Viewpoint - The optical communication sector is experiencing unprecedented growth, with major cloud companies significantly increasing capital expenditures, leading to a strong performance in the optical communication supply chain [9]. - The report notes that while the market is currently experiencing fluctuations, long-term investment opportunities are becoming more apparent, particularly in the context of rising prices for optical fibers and components [9]. Industry News - Major cloud service providers like Google and Amazon have substantially raised their capital expenditure forecasts for 2026, with Google estimating between $175 billion and $185 billion, nearly double that of 2025, and Amazon projecting around $200 billion, a 50% increase from the previous year [11][24][25]. - The report discusses the implications of a recent tax increase on value-added services in China, which may impact the revenue and profit margins of major telecom operators [12]. Investment Highlights - The report indicates that the proportion of holdings in the optical communication sector has increased, reflecting a positive market sentiment driven by AI-related infrastructure investments [11][41]. - The domestic new generation computing infrastructure is set to enter a new cycle, with significant opportunities arising from the ongoing global infrastructure wave [11][41]. - The report suggests that the AI-driven network upgrades will enhance communication capabilities, leading to rapid advancements in network innovation and technology applications [11][41].

Shares of fiber network giant Lumen Technologies (NYSE: LUMN) rocketed 29.2% on Friday. It was a big comeback for the stock, which had been decimated after its fourth-quarter earnings release on Tuesday afternoon. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Today, the company disclosed that CEO Kate Johnson took the post-earnings sell-off as an opportunity to buy a cool half-mill ...

Core Viewpoint - Lumen Technologies' stock experienced a significant increase following CEO Kate Johnson's purchase of approximately $500,000 worth of shares during a recent selloff, indicating investor confidence in her track record of successful insider purchases [1]. Group 1: CEO's Actions - CEO Kate Johnson identified a buying opportunity amid a sharp decline in Lumen's stock price [1]. - Johnson's past insider purchases have been well-timed, contributing to positive investor sentiment [1]. Group 2: Market Reaction - The stock price of Lumen Technologies soared after the announcement of Johnson's share purchase, reflecting investor optimism [1]. - The recent selloff was noted as one of the worst drops the telecommunications stock has faced in years, highlighting the volatility in the sector [1].

Key Takeaways LUMN delivered Q4 adjusted EPS of 23 cents, above expectations, despite an 8.7% year-over-year revenue drop.Amid AI-fueled connectivity demand, LUMN secured $13B in PCF deals with $41M recognized in Q4 revenues.LUMN cut debt by over $5B since January 2025 after asset sales and refinancing, lowering interest expense.Lumen Technologies, Inc. (LUMN) reported a fourth-quarter 2025 adjusted earnings (excluding special items) of 23 cents per share, which was significantly higher than the Zacks Conse ...