- Alex Henderson from Needham maintained a Hold rating on Viavi Solutions Inc VIAV.
- Viavi reiterated its FY1Q/CY3Q guidance and offered initial guidance for FY23 with Revenue of $1.265 billion - $1.335 billion and EPS of $0.90-$1.00 versus $0.95 in FY22 and consistent with the Street's Revenue estimate of $1.297 billion -$1.328 billion and EPS estimate of $0.90-$1.00 and mean of $0.96 amid a challenging economy.
- Longer-term, Viavi expects to deliver 5% Revenue, 10% EPS, and 15% Cash Flow from Operations growth.
- After a flat first year, this implies acceleration to 7%-8% Revenue growth in the two-year out period.
- Based on the $0.95 start base, Viavi offered an FY25 EPS target of $1.20-$1.30, modestly above the implied Street estimate of $1.10-$1.15 based on 10%-15% growth off the FY24 published estimates.
- He found it a relatively well-balanced and generally upbeat analyst day that was broadly in line with expectations.
- Viavi is well positioned for the gradual rollout of 5G, as he sees it, but the macro conditions could slow the process and keep growth relatively modest.
- Viavi management has exhibited strategic wisdom, operational excellence, and the ability to find and execute accretive acquisitions.
- He thinks Viavi has solid growth opportunities in 3D Sensing, T&M, and a superb Cash Cow in OSP.
- However, high exposure to international markets, particularly EMEA, leads him to decrease estimates.
- VIAV shares are not inexpensive, and he prefers to be on the sidelines.
- Price Action: VIAV shares traded higher by 0.39% at $14.195 on the last check Wednesday.
VIAVViavi Solutions Inc
$9.99-%
Edge Rankings
Momentum
86.11
Growth
9.43
Quality
-
Value
40.81
Price Trend
Short
Medium
Long
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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