Lumentum Stock Falls After Q3 Performance, Lukewarm Outlook: The Details

Lumentum Holdings Inc (NASDAQ: LITE) reported third-quarter FY23 revenue of $383.4 million, down by 3% year-on-year, beating the consensus of $382.2 million.
Optical Communications revenue declined by 2.6% Y/Y to $335.1 million, and Lasers revenue fell by 5.7% Y/Y to $48.3 million.
Margins: The non-GAAP gross margin decreased by 870 bps to 40.8%. The non-GAAP operating margin declined by 1,310 bps to 13.4%.
Adjusted EPS of $0.75 missed the consensus of $0.80.
Lumentum held $1.67 billion in cash and equivalents.
"Our third quarter results reflect the impact of customer inventory digestion, and we believe we are currently under-shipping end-market demand across our business," said Alan Lowe, President, and CEO.
"As we navigate current demand, we are prioritizing expense controls, accelerated attainment of acquisition synergies, and cash generation while we continue to deliver on our new product and technology roadmaps and customer satisfaction."
Outlook: Lumentum sees Q4 FY23 revenue of $350 million - $380 million versus the consensus of $377.45 million.
Lumentum sees an adjusted EPS of $0.45 - $0.65, below the consensus of $0.79.
Price Action: LITE shares traded lower by 6.12% at $44.96 on the last check Tuesday.