Lumentum's Q4 Results Outpace Estimates, Shares Dip On Subdued Forecast

Lumentum Holdings Inc (NASDAQ: LITE) reported fourth-quarter (Q4) 2023 revenue of $370.8 million. That's down by 12.2% year-on-year, beating the consensus of $366.5 million.

Adjusted EPS of $0.59 beat the consensus of 55 cents.

Optical Communications revenue declined by 13.6% Y/Y to $320.5 million, and Lasers revenue fell by 1.8% Y/Y to $50.3 million.

Margins: The non-GAAP gross margin decreased by 1,370 bps to 36.7%. The non-GAAP operating margin declined by 1,970 bps to 9.1%.

Lumentum held $2.01 billion in cash and equivalents.

"With generational upgrades in the backbone of the network and increased customer activity for AI in the data center, we expect year-over-year Telecom and Datacom growth in calendar 2024," said Lumentum CEO Alan Lowe said.

Q4 revenue and EPS results were above the midpoints of our guidance, Lowe noted.

"We believe that the current customer inventory correction cycle will continue through the balance of the calendar year, and therefore, our shipments will be below end-market demand," he added.

Outlook: Lumentum sees Q1 FY24 revenue of $300 million - $325 million, versus the consensus of $369.1 million.

Lumentum sees an adjusted EPS of $0.20 - $0.35, below the consensus of $0.58.

Price Action: LITE shares opened at $49.00 a share Thursday. At last check, the stock was down 0.06% and trading at around $46.78.