Lumentum stock rises on raised guidance

Investing.com -- Shares of Lumentum Holdings (NASDAQ: NASDAQ: LITE) climbed 6% after-hours following the company’s updated guidance revealed in a recent slide presentation. The optical and photonic products manufacturer adjusted its fourth-quarter net revenue forecast from the previous range of $440 million to $470 million to a new range of $465 million to $475 million, surpassing the consensus estimate of $457.1 million.

The company also improved its operating margin outlook, now expecting 14% to 15% compared to the prior 13% to 14%. Additionally, Lumentum’s adjusted earnings per share (EPS) for the fourth quarter are now anticipated to be between 78 cents and 85 cents, up from the earlier estimate of 70 cents to 80 cents, and above the analyst expectation of 74 cents.

In a longer-term projection, Lumentum anticipates achieving $500 million in revenue in the first quarter of 2026, which is one quarter earlier than previously expected. The company’s revenue outlook of $600 million per quarter remains unchanged, with expectations to reach this target by the fourth quarter of FY26 or the first quarter of FY27.

The updated guidance suggests that Lumentum is on track to accelerate its revenue growth and improve profitability ahead of its initial schedule. This positive revision in the company’s financial outlook is the primary driver behind the stock’s upward movement.

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