Lumentum shares surge on earnings beat, strong guidance

Published 06/05/2025, 21:52
Lumentum shares surge on earnings beat, strong guidance

Investing.com -- Lumentum Holdings Inc . (NASDAQ:LITE) saw its shares jump 5.9% after the optical and photonic products manufacturer reported better-than-expected fiscal third-quarter results and issued upbeat guidance.

The company posted adjusted earnings per share of $0.57 for the quarter ended March 29, 2025, surpassing the analyst estimate of $0.50. Revenue came in at $425.2 million, exceeding the consensus forecast of $418.15 million and representing a 16% increase YoY.

Lumentum’s strong performance was driven by robust demand from cloud customers and a recovering networking market. The company’s Cloud & Networking segment, which accounted for 85.9% of total revenue, grew 16.4% YoY to $365.2 million.

"In Q3, we exceeded the high end of our guidance for both revenue and EPS, fueled by strong demand from cloud customers and a recovering networking market," said Michael Hurlston, President and CEO of Lumentum.

Looking ahead, Lumentum provided an optimistic outlook for the fiscal fourth quarter. The company expects revenue between $440 million and $470 million, compared to the analyst consensus of $453.7 million. Adjusted EPS is projected to be in the range of $0.70 to $0.80, above the Street estimate of $0.64.

The company’s non-GAAP gross margin improved to 35.2% in the third quarter, up from 28.7% in the same period last year. Non-GAAP operating margin also saw a significant increase, reaching 10.8% compared to -0.2% in the prior-year quarter.

Hurlston expressed confidence in the company’s future prospects, stating, "Despite ongoing macroeconomic volatility, we believe AI-driven cloud growth will continue to drive our financial momentum into Q4 and beyond."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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