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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."
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