Shares of Lumentum Holdings Inc (NASDAQ:LITE) spiked in price on Wednesday, after the company reported fiscal fourth-quarter results.
Here are the key analyst takeaways:
- TD Cowen analyst Sean O’Loughlin maintained a Hold rating, while raising the price target from $800 to $82s0.
- Rosenblatt Securities analyst Mike Genovese reaffirmed a Buy rating and price target of $1,300.
Check out other analyst stock ratings.
TD Cowen: Lumentum delivered a "standout" beat-and-raise quarter. While earnings were reported around 10% above guidance. Management’s September quarter outlook was more than 15% ahead of consensus estimates.
"Much of management’s positive commentary was consistent with intra-quarter messaging that described a strong and even accelerating demand environment," O’Loughlin said in a note. He highlighted these positives:
- The September-quarter revenue guidance was well above Street numbers and showed the company hitting its target of $1.25 billion around three months early.
- Management indicated EML demand exceeding supply by around 30%.
- Strong execution in its "significant supply chains ramp across multiple diverse product categories and manufacturing processes."
Rosenblatt Securities: Lumentum’s revenue grew 190% year-on-year and 25% sequentially to surpass $1 billion, Genovese said. Gross margins expanded around 200 basis points (bps) to 50.4%, which took and earnings to a higher-than-expected $3.23 per share, he added.
Management guided to first-quarter revenues of $1.25 billion, representing 24% sequential and 134% year-on-year growth, "effectively reaching its mid-term revenue target a quarter early, accompanied by higher profitability," with operating margins at around 40%, the analyst stated.
Lumentum LITE now targets around $2 billion in quarterly revenue by the fourth quarter of fiscal 2027, he noted.
Genovese further highlighted:
- Optical Circuit Switching (OCS) is on track to log its first nine-figure ($100M+) revenue quarter in the current period.
- Demand for both CPO and NPO lasers is accelerating.
- NVIDIA Corp’s (NASDAQ:NVDA) laser purchases remain on schedule for the second half of 2027.
LITE Price Action: Shares of Lumentum Holdings had risen by 14.89% to $942.75 at the time of publication on Wednesday.
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