Lumentum Holdings (NASDAQ: LITE) reported Q3 EPS of $1.26, $0.21 better than the analyst estimate of $1.05. Revenue for the quarter came in at $402.8 million versus the consensus estimate of $409.09 million.

"While the COVID-19 pandemic is currently impacting our ability to satisfy strong customer demand for our communications products, we believe the world's experience with COVID-19 will accelerate the shift to increasingly digital and virtual approaches to work, education, health care, entertainment, social interaction, and commerce, creating even more opportunity for Lumentum over the long-ter", said Alan Lowe, President and CEO. "Our strategy of technology and product leadership in close alignment with market leading customers is even more apt in these times. The market and technology leadership positions and financial strength we have attained to date, with this strategy, position us well for the future."

GUIDANCE:

Lumentum Holdings sees Q4 2020 EPS of $0.70-$0.90, versus the consensus of $1.05. Lumentum Holdings sees Q4 2020 revenue of $325-365 million, versus the consensus of $411.9 million.

Business Outlook The projections we are providing today incorporate our expectations considering the significant impact of the COVID-19 pandemic on our ability to supply our products and market demand in the fiscal fourth quarter. This includes on-going component supply challenges and limited production in Malaysia in the first half of the quarter. We are providing a wider than normal revenue range to incorporate uncertainty around our assumptions on the impact of COVID-19.

Lumentum expects the following for the fiscal fourth quarter 2020:

• Net revenue in the range of $325 million to $365 million
• Non-GAAP operating margin of 18% to 21%
• Non-GAAP diluted earnings per share of $0.70 to $0.90
• Estimated fourth quarter impact from COVID-19 is a reduction in revenue of more than $90 million and a reduction in non-GAAP diluted earnings per share of more than $0.50

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