Lumentum Holdings (LITE) Reports In-Line Q3 EPS, Revenues Miss; Offers 4Q EPS/Revenues Guidance Below Consensus

Lumentum Holdings (NASDAQ: LITE) reported Q3 EPS of $1.40, in-line with the analyst estimate of $1.40. Revenue for the quarter came in at $419.5 million versus the consensus estimate of $433.49 million.

"The strong year on year margin improvements in our third quarter results highlight a product portfolio increasingly rich in new and differentiated products that are aligned with multi-year favorable market trends and the impact of continuous improvement in our operations," said Alan Lowe, President and CEO. "Out of an abundance of caution, we deferred $14.8 million of revenue due to delays in 5G deployments in China, which decreased our reported revenue accordingly. Despite the lower revenue, due to the strength of our financial model we achieved approximately 50% non-GAAP gross margin, and strong non-GAAP operating margin and EPS, both of which were within our guidance ranges. Between our product and technology portfolio, our design-wins with market leading customers, and the positive changes in our business model and the industry over the past several years, I believe the future continues to be very bright at Lumentum."

"Based on confidence in our long-term outlook, and our cash balance having increased by more than $600 million over the past 12 months through strong cash generation, the Lumentum Board of Directors has approved a share buyback program of up to $700 million over the next two years," said Wajid Ali, Executive Vice President and CFO. "Despite short-term headwinds in our industry, our guidance is consistent with our historical seasonality when normalizing for the revenue we deferred and the recent 14-week quarter."

GUIDANCE:

Lumentum Holdings sees Q4 2021 EPS of $0.92-$1.14, versus the consensus of $1.26. Lumentum Holdings sees Q4 2021 revenue of $360-400 million, versus the consensus of $408.97 million.

• Net revenue in the range of $360 million to $400 million
• Non-GAAP operating margin of 22.5% to 25.0%
• Non-GAAP diluted earnings per share of $0.92 to $1.14

For earnings history and earnings-related data on Lumentum Holdings (LITE) click here.

You May Also Be Interested In

• Orgenesis (ORGS) Issues Year End Business Update
• Charles Schwab (SCHW) EPS edges past estimates, revenue up sequentially but dips YoY
• Cryo-Cell International, Inc. (CCEL) Tops Q1 EPS by 9c