Lumentum beats by $0.06, beats on revs; guides Q4 EPS mostly above, revs below consensus (61.39)
- Reports Q3 (Mar) earnings of $0.91 per share, excluding non-recurring items, $0.06 better than the S&P Capital IQ Consensus of $0.85; revenues rose 44.8% year/year to $433 mln vs the $428.33 mln S&P Capital IQ Consensus.
- Co issues guidance for Q4, sees EPS of $0.85-1.00, excluding non-recurring items, vs. $0.88 S&P Capital IQ Consensus; sees Q4 revs of $405-425 mln vs. $428.99 mln S&P Capital IQ Consensus. During the fiscal third quarter and in the fiscal fourth quarter to date, Lumentum executed a series of strategic actions related to a shift in its datacom strategy to focus on photonic chip sales. These strategic actions include completing the divestiture of certain datacom product lines to Cambridge Industries Group (CIG) on April 18, 2019. A result of these strategic actions is lower on-going revenue from its datacom product lines.
- "The third quarter continued a theme that started more than a year ago for our ROADM and fiber laser product lines. For the fifth quarter in a row, we achieved double digit sequential, quarterly revenue growth and new record revenues for these product lines driven by strong customer demand for our new and differentiated products," said Alan Lowe, President and CEO. "The third quarter was the first full quarter since completion of the acquisition of Oclaro. We made solid progress on integrating the companies and attaining synergies, including the divestiture and planned exit of certain datacom product lines. This continued progress results in our fourth quarter projected operating margins being sequentially higher on lower revenues after the divestiture and positions us well for achieving our long-term strategic goals.