(Reuters) -Telecommunications firm Lumen Technologies sharply raised its expectations for annual free cash flow on Tuesday as AI boom drives growth, helping its shares add another 66% in extended trading after nearly doubling in regular session.
Lumen is seeing strong demand for its high-capacity fiber, which enables secure digital connections for data centers supporting AI ventures.
On Monday, the company said it had signed deals worth $5 billion with cloud and tech customers including Microsoft (NASDAQ:MSFT) and is currently in talks with clients to secure additional contracts worth $7 billion.
Lumen's stock, which had declined about 65% in 2023, has rebounded following a deal signed in January with a group of lenders that extended its debt maturities to at least 2029.
The company raised its annual free cash flow forecast to between $1 billion and $1.2 billion from between $100 million and $300 million.
The Monroe, Louisiana-based company reported revenue of $3.27 billion in the second quarter, compared with estimates of $3.25 billion, according to LSEG data.
Excluding items, it posted a loss of 13 cents per share, compared to a profit of 10 cents per share in the same period last year, as interest expenses jumped 27% to $373 million in the second quarter.