Lumentum shares surge 11% on earnings beat and strong guidance

SAN JOSE, Calif. - Lumentum Holdings Inc . (NASDAQ:LITE ) saw its shares jump 11% in after-hours trading on Monday after the optical and photonic products manufacturer reported better-than-expected fiscal fourth quarter results and issued upbeat guidance.

The company posted adjusted earnings per share of $0.06, beating analyst estimates of $0.02. Revenue came in at $308.3 million, surpassing the consensus forecast of $301.14 million. However, revenue was down 16.9% YoY from $370.8 million in the same quarter last year.

"We exceeded our guidance midpoints for both revenue and EPS in the fourth quarter," said Alan Lowe, President and CEO of Lumentum. "We booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market."

For the first quarter of fiscal 2025, Lumentum expects revenue between $315 million and $335 million, above analyst projections of $311.4 million. The company also forecast adjusted EPS of $0.07 to $0.17, compared to the $0.12 consensus estimate.

The strong results and outlook come despite ongoing challenges in the optical components industry. Lumentum's non-GAAP gross margin contracted to 32.2% in Q4 from 36.7% a year ago.

Looking ahead, Lowe said the company is "making significant progress executing our strategy to broaden our cloud and AI customer base, which will lead to accelerated growth in calendar year 2025."

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Source: Investing.com