Lumentum reports better-than-expected Q3 earnings, Q4 guidance above estimates

Lumentum’s marginal revenue beat in Q3 sparked a knee-jerk “sell the news” event despite strong Q3 bottom-line results and Q4 guidance to match, but shares have since rebounded to trade higher in the postmarket.

The recent addition to the S&P 500 reported Q3 results of:

• Net revenue: $808.4 million (compared to analyst estimates of $805 million and guidance for $780 million to $830 million).

• Adjusted earnings per share: $2.37 (estimate: $2.27, guidance for $2.15 to $2.35).

For Q4, management expects net revenues to come in between $960 million and $1.01 billion (estimate: $936.6 million) with adjusted earnings per share of $2.85 to $3.05 (estimate: $2.75).

“As our key growth drivers of co-packaged optics and optical circuit switches begin to kick in, we would expect further increases in earnings power,” said CEO Michael Hurlston.

Lumentum received a $2 billion investment and purchase commitment from none other than Nvidia earlier this year, as there’s intense appetite for its lasers and switches that are used to move information around in data centers.

In April, Hurlston said that the company is “falling further and further behind the demand” for its optical components and would be sold out through all of 2028 within two quarters.

The advanced optics company is a top 5 performer in the US benchmark index year to date.