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(Reuters) -Telecommunications agency Lumen Applied sciences sharply raised its expectations for annual free money circulation on Tuesday as AI increase drives progress, serving to its shares add one other 66% in prolonged buying and selling after almost doubling in common session.
Lumen is seeing robust demand for its high-capacity fiber, which allows safe digital connections for knowledge facilities supporting AI ventures.
On Monday, the corporate stated it had signed offers price $5 billion with cloud and tech clients together with Microsoft (NASDAQ:) and is at present in talks with purchasers to safe further contracts price $7 billion.
Lumen’s inventory, which had declined about 65% in 2023, has rebounded following a deal signed in January with a gaggle of lenders that prolonged its debt maturities to a minimum of 2029.
The corporate raised its annual free money circulation forecast to between $1 billion and $1.2 billion from between $100 million and $300 million.
The Monroe, Louisiana-based firm reported income of $3.27 billion within the second quarter, in contrast with estimates of $3.25 billion, in keeping with LSEG knowledge.
Excluding objects, it posted a lack of 13 cents per share, in comparison with a revenue of 10 cents per share in the identical interval final 12 months, as curiosity bills jumped 27% to $373 million within the second quarter.
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