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SAN JOSE - Lumentum Holdings Inc. (NASDAQ:LITE) shares surged 10% in afterhours trading Tuesday after the optical components maker reported strong fiscal first-quarter results and issued guidance that significantly exceeded analyst expectations, driven by robust demand from AI data center applications.
The company reported adjusted earnings of $1.10 per share for the quarter ended September 27, beating analyst estimates of $1.03. Revenue reached $533.8 million, surpassing the consensus estimate of $526 million and representing a 58.4% increase YoY.
Lumentum’s forward-looking guidance particularly impressed investors, with the company projecting second-quarter revenue between $630 million and $670 million, well above analyst expectations of $561.9 million. The company also forecast adjusted earnings of $1.30 to $1.50 per share for the second quarter, exceeding the consensus estimate of $1.17.
"In our fiscal first quarter, we saw year-over-year revenue growth of 58 percent and operating margin expansion of over 1,500 basis points on a non-GAAP basis," said Michael Hurlston, Lumentum President and CEO. "Our guidance indicates we expect more than 20 percent sequential revenue growth, even before meaningful contributions from two of our next major growth engines—optical circuit switches and co-packaged optics."
The company’s components segment, which accounted for 71% of total revenue, grew 63.9% YoY to $379.2 million. Meanwhile, the systems segment increased 46.5% YoY to $154.6 million.
Adjusted gross margin improved to 39.4% from 32.8% in the year-ago quarter, while adjusted operating margin expanded dramatically to 18.7% from just 3.0% a year earlier.
Lumentum’s strong performance reflects growing demand for optical components used in AI data centers, data center interconnect, and long-haul markets, positioning the company to benefit from the ongoing expansion of AI computing infrastructure.
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