Why Lumentum (LITE) Shares Are Falling Today - Lumentum Holdings (NASDAQ:LITE)

Lumentum Holdings Inc (NASDAQ: LITE) reported first-quarter FY23 revenue of $506.8 million, up 13% year-on-year, beating the consensus of $503.6 million.
Optical Communications revenue rose 11.7% Y/Y to $453.4 million, and Lasers revenue rose 25.9% Y/Y to $53.4 million.
Margins: The non-GAAP gross margin decreased by 680 bps to 48.2%. The non-GAAP operating margin declined by 830 bps to 27.1%.
Adjusted EPS of $1.69 beat the consensus of $1.56.
Lumentum held $1.62 billion in cash and equivalents.
CEO Alan Lowe said, "Looking forward and consistent with industry trends, supply of specific IC components has not materialized as quickly as expected, and we now expect these shortages to continue into our fiscal 2024. Also, our near-term Datacom and 3D sensing outlook is lower than our prior projections."
Outlook: Lumentum sees Q2 FY23 revenue of $490 million - $520 million, below the consensus of $540.3 million.
Lumentum sees an adjusted EPS of $1.20 - $1.45, below the consensus of $1.60.
Price Action: LITE shares traded lower by 13.8% at $60.70 on the last check Tuesday.

Lumentum Shares Drop Post Cautious Q2 Outlook