Lumentum Stock Is Losing Ground After Hours: Here's Why

Lumentum Holdings Inc (NASDAQ::LITE) shares are falling in extended trading Wednesday after the company reported preliminary fiscal third-quarter results.

What Happened: Lumentum said it expects third-quarter revenue to be between $380 million and $384 million versus estimates of $444.15 million. The company previously guided for quarterly revenue of $430 million to $460 million.

"Late in our fiscal 2023 third quarter, a network equipment manufacturer who represented more than 10 percent of our fiscal second quarter revenue informed us that due to their inventory management, they would not take the shipments we had originally projected for the quarter," said Alan Lowe, president and CEO of Lumentum.

"This shortfall is the primary reason that our fiscal 2023 third quarter revenue will be below the low end of our prior guidance range."

Lumentum's board approved an increase of $1.2 billion for the company's buyback program. 

Lumentum is set to report financial results before the market open on May 9.

LITE Price Action: Lumentum shares were down 9.53% after hours at $46.42 at time of publication, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.