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SAN JOSE, Calif. - Lumentum Holdings Inc . (NASDAQ:LITE) reported better-than-expected fiscal second-quarter results on Thursday, but shares tumbled 5% as the earnings beat failed to meet high investor expectations.
The optical and photonic products manufacturer posted adjusted earnings per share of $0.42, surpassing the analyst estimate of $0.35. Revenue for the quarter ended December 28, 2024, came in at $402.2 million, exceeding the consensus forecast of $388.86 million and representing a 9.7% increase YoY.
Despite the positive results, investors appeared disappointed, possibly due to elevated expectations following recent stock gains. The company’s guidance for the fiscal third quarter also failed to excite the market, despite being largely in line with analyst projections.
Lumentum expects Q3 revenue between $410 million and $425 million, compared to the consensus estimate of $413.8 million. The company forecasts adjusted EPS of $0.47 to $0.53, above the analyst expectation of $0.41.
"In the second quarter, we exceeded the high end of our guidance ranges for both revenue and earnings per share, driven by strong demand in the cloud end market," said Alan Lowe, President and CEO of Lumentum. "This is an exciting time for Lumentum as we position ourselves to capitalize on expanding cloud opportunities and the recovery of the broader networking market."
The company’s Cloud & Networking segment saw a significant 18.3% YoY increase in revenue to $339.2 million, while the Industrial Tech segment experienced a 21.3% YoY decline to $63 million.
Lumentum maintained its goal of reaching $500 million in quarterly revenue by the end of calendar year 2025, citing its strong market position and improving industry trends.
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