Lumentum Clocks Over 13% Revenue Growth In Q2 Backed By Demand For Telecom & Commercial Lasers; Margins Shrink As Supply Chain Crisis Weigh

Lumentum Holdings Inc (NASDAQ: LITE) reported second-quarter FY23 revenue of $506 million, up 13.3% year-on-year, missing the consensus of $506.99 million.
Optical Communications revenue rose 12.9% Y/Y to $448.8 million, and Lasers revenue rose 16% Y/Y to $57.2 million.
Margins: Non-GAAP gross margin decreased by 610 bps to 44.9%. Non-GAAP operating margin declined by 860 bps to 23.1%.
Adjusted EPS of $1.52 beat the consensus of $1.32.
Lumentum held $1.68 billion in cash and equivalents.
"Our second quarter financial and operational performance was very strong, led by robust demand from our Telecom and Commercial Lasers customers. Non-GAAP operating margin and Non-GAAP earnings per share were both above the high end of our guidance range with revenue above the midpoint," said Alan Lowe, President, and CEO. "These results reflect structural improvement in the long-term operating costs of the company as we continue to execute on our synergy plan."
Outlook: Lumentum sees Q3 FY23 revenue of $430 million - $460 million, below the consensus of $469.1 million.
Lumentum sees an adjusted EPS of $1.00 - $1.15 versus the consensus of $1.02.
Price Action: LITE shares traded lower by 2.09% at $59.89 on the last check Thursday.

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