LUMN - Lumen Technologies: Turnaround Update After Q1 Earnings

2024-05-06 03:15:39 ET

Summary

• Lumen Technologies' debt restructuring deal closes, providing the company with a five-year runway to turn around operations.
• The company's first quarter financial results show a decline in revenue and adjusted EBITDA, but 2024 guidance offers optimism for future growth.
• LUMN has improved liquidity and is working towards reinventing itself, but investors should be cautious of the risks involved.

Last week, Lumen Technologies ( LUMN ) announced its first quarter earnings. The telecom company is attempting a turnaround by transforming its business. I've been holding the company's 2039 maturing bonds, which are currently trading at 31 cents on the dollar and yielding 26% to maturity, along with a small equity position. After covering fourth quarter earnings and reviewing the company's first quarter earnings report, I believe the company is making progress in what will be a critical year....

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