Why Shares of Lumen Technologies Tumbled 8.8% Today
Shares of Lumen Technologies (NYSE: LUMN) (formerly CenturyLink) were down 8.8% at market close on Wednesday. The tumble in share price followed the company's second-quarter 2021 earnings update, which showed a 5% year-over-year decline in revenue to $4.92 billion, but a 34% increase in free cash flow to $993 million.
Lumen remains highly profitable, but its sales have been stuck in stubborn decline for years as legacy telecom services slowly but steadily lose value over time. Adding to the problem, the company is short on cash and equivalents ($935 million at the end of June) and has plenty of long-term debt ($28.6 billion).
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Source Fool.com
