Why Lumen Technologies Stock Plummeted (Again) in February
Network solutions provider Lumen Technologies (NYSE: LUMN) had a terrible February, despite an earnings report early in the month that seemed to hit all the right notes. The stock fell 35.2% last month, according to data from S&P Global Market Intelligence.
At first glance, the fourth-quarter report looked pretty good. The analyst consensus had called for earnings of roughly $0.19 per share on revenue near $3.78 billion. Instead, the company saw $0.43 of bottom-line earnings per share and a sales haul of $3.80 billion.
But investors shrugged off the better-than-decent results in light of gloomy guidance and downbeat management comments. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) are expected to drop roughly 30% next year, while free cash flow should land near the break-even point. Lumen's stock closed 20.8% lower that day and continued to trend downward through the rest of February.
Source Fool.com
