Latest news with #ChrisStansbury
Yahoo
24-05-2025
- Business
- Yahoo
AT&T to Acquire Lumen's Consumer Fiber for $5.75 Billion
On Wednesday, AT&T Inc. (NYSE:T) announced an agreement to acquire substantially all of Lumen Technologies' (NYSE:LUMN) consumer fiber business for $5.75 billion in cash, subject to purchase price adjustments. This aims to expand AT&T's national fiber footprint, which is expected to close in H1 2026, pending regulatory approval by the Department of Justice and other customary closing conditions. Close-up of a technician's hands adjusting a communication router. The acquisition will add ~1 million fiber customers to AT&T Inc.'s (NYSE:T) base and extend its fiber-network operations in major metropolitan areas across 11 US states. This expansion aligns with AT&T's goal to reach ~60 million total fiber locations by year-end 2030, which would almost double its current fiber availability. For Lumen Technologies (NYSE:LUMN), the sale of its consumer fiber assets allows the company to sharpen its focus on its enterprise fiber business. Chris Stansbury, CFO of Lumen, stated that the cash proceeds from the sale will help Lumen reduce its debt by $4.8 billion and enhance cash flow by cutting interest expenses by over $300 million annually. Lumen will retain its enterprise and wholesale fiber customers, its national fiber backbone network infrastructure, and its existing copper network that primarily serves consumer customers. While we acknowledge the potential of T to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than T and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
CNA
21-05-2025
- Business
- CNA
AT&T agrees to buy Lumen's consumer fiber business for $5.75 billion
AT&T has clinched a deal to acquire Lumen Technologies' consumer fiber operations for $5.75 billion in cash, the companies said on Wednesday, as the wireless provider adds further scale to its national fiber footprint. Lumen's shares were up 13 per cent in after-market trading on the sale of the business, which provides high-speed internet services to residential customers. Buying the unit will gain AT&T 1 million fiber customers, as well as significantly expand its fiber-network operations in Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City and Seattle, according to an AT&T statement. Reuters first reported in December that Lumen was marketing the business for sale. The deal allows Lumen to focus on growing the company's enterprise fiber business, Lumen Chief Financial Officer Chris Stansbury told Reuters. It will also allow it to invest in low-latency technology, which is critical for supporting artificial intelligence workflows, he said. "The customers are asking us to go faster, which is really to deliver their needs in a multi cloud, AI-first world,' Stansbury said. The cash proceeds from the sale will help Lumen trim its debt pile by $4.8 billion and improve cash flow by reducing interest expenses by more than $300 million annually, he said. The transaction is expected to close in the first half of 2026. AT&T said, once completed, the acquired assets and some other capabilities will be housed in a new subsidiary, in which it plans to sell a minority stake.
CNA
21-05-2025
- Business
- CNA
AT&T agrees to buy Lumen's consumer fiber business for $5.75 billion in cash
AT&T has clinched a deal to acquire Lumen Technologies' consumer fiber operations for $5.75 billion in cash, the companies said on Wednesday, as the wireless provider adds further scale to its national fiber footprint. Buying the unit will gain AT&T 1 million fiber customers, as well as significantly expand its fiber-network operations in Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City and Seattle, according to an AT&T statement. The sale of its consumer fiber assets, first reported by Reuters, allows Lumen to focus on growing the company's enterprise fiber business, Chris Stansbury, Chief Financial Officer of Lumen, told Reuters in an interview. The cash proceeds from the sale will help Lumen trim its debt pile by $4.8 billion and enhance cash flow by reducing interest expenses by more than $300 million annually, according to Stansbury.
Reuters
21-05-2025
- Business
- Reuters
AT&T agrees to buy Lumen's consumer fiber business for $5.75 billion in cash
May 21 (Reuters) - AT&T (T.N), opens new tab has clinched a deal to acquire Lumen Technologies' (LUMN.N), opens new tab consumer fiber operations for $5.75 billion in cash, the companies said on Wednesday, as the wireless provider adds further scale to its national fiber footprint. Buying the unit will gain AT&T 1 million fiber customers, as well as significantly expand its fiber-network operations in Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City and Seattle, according to an AT&T statement. The sale of its consumer fiber assets, first reported, opens new tabby Reuters, allows Lumen to focus on growing the company's enterprise fiber business, Chris Stansbury, Chief Financial Officer of Lumen, told Reuters in an interview. The cash proceeds from the sale will help Lumen trim its debt pile by $4.8 billion and enhance cash flow by reducing interest expenses by more than $300 million annually, according to Stansbury.
Yahoo
16-05-2025
- Business
- Yahoo
LUMN Q1 Earnings Call: Digital Transformation and Fiber Initiatives Drive Revenue Outperformance
Telecommunications infrastructure company Lumen Technologies (NYSE:LUMN) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 3.3% year on year to $3.18 billion. Its non-GAAP loss of $0.13 per share was 51.1% above analysts' consensus estimates. Is now the time to buy LUMN? Find out in our full research report (it's free). Revenue: $3.18 billion vs analyst estimates of $3.12 billion (3.3% year-on-year decline, 1.9% beat) Adjusted EPS: -$0.13 vs analyst estimates of -$0.27 (51.1% beat) Adjusted EBITDA: $929 million vs analyst estimates of $816.2 million (29.2% margin, 13.8% beat) EBITDA guidance for the full year is $3.3 billion at the midpoint, below analyst estimates of $3.33 billion Operating Margin: 3.4%, up from 1.4% in the same quarter last year Free Cash Flow Margin: 11.1%, down from 15.7% in the same quarter last year Market Capitalization: $4.42 billion Lumen's first quarter results reflected ongoing operational changes and strategic investments in digital platforms and fiber infrastructure. Management pointed to expansion in the company's core Grow product categories—led by demand for fiber and next-generation network services—as a key factor in surpassing market revenue expectations. CEO Kate Johnson highlighted progress in modernizing networks, expanding direct fiber connections, and introducing new digital offerings. She stated, 'We're confident in our goal of generating at least $250 million in savings exiting 2025 and $1 billion exiting 2027.' Looking forward, Lumen's guidance is shaped by both macroeconomic uncertainty and the company's transition to a digital-first model. Management reiterated its commitment to margin expansion and long-term revenue growth through new digital services and operational efficiency. CFO Chris Stansbury noted, 'We have confidence in our margin expansion and total EBITDA returning to full year growth in 2026 and growing thereafter,' citing ongoing cost optimization and platform adoption as critical drivers for the rest of the year. Lumen's management detailed several transformation initiatives in Q1, emphasizing digital platform adoption and network modernization as primary contributors to performance. The company's results benefited from lower disconnect rates, strong fiber broadband growth, and continued improvement in enterprise and public sector demand. Digital platform adoption: Lumen recorded a 23% quarter-over-quarter increase in new digital customers, with a 26% rise in Fabric Ports provisioned and a 29% jump in layered digital services sold. Management attributed this to the appeal of on-demand, cloud-style networking. Fiber infrastructure expansion: The company reported progress on its $8.5 billion private connectivity fabric (PCF) projects, with 57 sites under construction and the first tranche on schedule. This buildout is intended to support AI-driven network demand. Enterprise and public sector momentum: Grow product revenue—especially from large enterprise and public sector clients—posted near double-digit growth. Public sector revenue grew 14.7% year over year, driven by large bookings and modernization initiatives. Legacy service decline management: Lumen continued to proactively disconnect uneconomical legacy services, which contributed to lower absolute dollar disconnects and improved overall margins. Management views these actions as margin-accretive. Network modernization savings: The company reiterated its target for $250 million in cost savings exiting 2025, driven by unified network architecture, automation, and AI integration across operations. Management's outlook for the year centers on continued adoption of digital networking, fiber expansion to support AI and cloud workloads, and disciplined cost reductions. The broader trend is a transition from legacy telecom to a digital, software-centric model that could enable margin improvement and new revenue streams. Digital service scaling: Lumen expects further uptake of its digital platform and Fabric Ports, which allow customers to manage multiple services more efficiently and could drive higher-margin revenue over time. AI and enterprise demand: The company is positioning its network to support growing enterprise needs for bandwidth, particularly as AI applications accelerate data traffic and require reliable, low-latency connectivity. Operational efficiency initiatives: Management is focused on achieving targeted cost savings through ongoing network unification, automation, and simplification, which are intended to offset declines in legacy products and support margin expansion. Michael Rollins (Citi): Asked if Grow revenue can sustain double-digit growth and how much is from new versus existing customers. Management said demand is strong, driven by large enterprise and public sector, but did not specify the customer mix. Batya Levi (UBS): Inquired about the impact of cloud economics on margins and the transferability of these strategies to other segments. Management explained that digital platforms lower marginal costs but said it is too early to quantify margin impact. Jim Schneider (Goldman Sachs): Sought details on the timing of the remaining PCF pipeline conversion and potential risks from accelerated legacy disconnects. Management confirmed active customer discussions and expects continued strategic investment in fiber. Nick Del Deo (MoffettNathanson): Asked if public sector revenue benefited from large, lumpy payments and how new digital services are priced. Management said public sector remains strong and digital services are priced based on value, not discounts. Frank Louthan (Raymond James): Requested differentiation details for the NAS product and color on public sector trends. Management highlighted the unique integration of digital and physical networks and emphasized ongoing strength in public sector bookings. In the coming quarters, the StockStory team will watch (1) the scale and pace of adoption for Lumen's digital platform and Fabric Ports, (2) the completion and revenue contribution from ongoing PCF fiber expansion projects, and (3) the company's progress toward its cost savings targets through network modernization and automation. Developments in cloud partnerships and enterprise demand for AI-ready infrastructure will also be key factors. Lumen currently trades at a forward EV-to-EBITDA ratio of 1.2×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
