Lumentum Holdings (NASDAQ: LITE)
Shares of Lumentum Holdings increased by 11% on Wednesday after the company posted strong third quarter earnings. The company reported earnings and revenue that were above the expectations of analysts. Lumentum purchased Oclaro Inc., an optical components manufacturer, in March for approximately $1.7 million.
The acquisition is aimed at helping the company broaden its market for the 3D sensing technology. The company recorded an increase in sales of the 3D sensing lasers, which according to industry experts, power the Face ID technology on Apple’s latest iPhones.
LITE Earnings & Outlook
During the quarter, Lumentum Holdings reported adjusted earnings per share of $0.78 compared to $0.49 earnings per share in the year-ago period. The adjusted earnings surpassed the consensus analyst estimate of $0.71. The company posted net revenue of $298.8 million beating analyst expectation of $292.3 million.
Lumentum projects adjusted earnings per share of between $0.55 and $0.75 and net revenue of between $275 and $300 million for the fourth quarter. The consensus analyst estimate for the upcoming quarter was $0.62 earnings per share on a revenue of $279 million.
Lumentum Holdings CEO Comments
“Our strategy of investing in differentiated products and technologies, focusing on close relationships with market leading customers, and leveraging our technologies across multiple growing end markets, is working. Driven by strong customer demand and execution on capacity expansion, in the third quarter we achieved new record Lasers revenues, which increased 18% sequentially, and grew Telecom revenues by more than 11% sequentially, with notable strength in ROADMs, which were up 27% sequentially,” said Alan Lowe the Chief Executive Officer of the company.
“Though seasonally down, we made good progress on new 3D sensing customer programs and are well positioned for new customer product introductions during FY19. During the third quarter, we announced reaching an agreement to acquire Oclaro and we continue to work with Oclaro on this pending transaction,” Mr. Lowe added.
Lumentum Holdings Inc. Company Profile
Lumentum Holdings, Inc. is based in Milpitas, California and was incorporated on 2015. The company develops and manufactures photonic and optical products facilitating commercial laser and optical networking. Its subsystems and components are part of data center, telecom and enterprise network.
Lumentum Holdings operates in two sections; Commercial Lasers and Optical Communications. The Commercial Lasers section consists of subsystems used in various Original Equipment Manufacturers (OEMs) applications.
The Optical Communications section consists of subsystems and modules to maintain and support clients in two main markets, Datacom and Telecom. The company’s competitors include Furukawa Electric Ltd., Ipg Photonics Corporation and Finisar Corporation. –Reuters
