- Lumentum Holdings Inc (NASDAQ:LITE) reported third-quarter FY22 revenue of $395.4 million, down 5.7% year-on-year, in line with the consensus.
- Optical Communications revenue declined 11.3% Y/Y to $344.2 million, and Lasers revenue rose 62% Y/Y to $51.2 million.
- Margins: The non-GAAP gross margin contracted 40 bps to 49.5%. The non-GAAP operating margin compressed 140 bps to 26.5%.
- Adjusted EPS of $1.19 beat the consensus of $1.12.
- Lumentum held $2.6 billion in cash and equivalents and generated $76.6 million in operating cash flow.
- CEO Alan Lowe said, "Demand for our products continues to accelerate, and we now expect demand to outpace component supplies by more than $100 million in the fourth quarter. Our fourth-quarter revenue is expected to increase from the third quarter, primarily driven by Telecom product shipments."
- Lowe added, "I am highly optimistic about our outlook and believe market inflections beneficial to Lumentum in our addressable markets will drive double-digit revenue growth in fiscal 2023 and beyond."
- Outlook: Lumentum sees Q4 revenue of $405 million - $430 million, versus the consensus of $408.2 million.
- Lumentum sees an adjusted EPS of $1.25 - $1.40, above the consensus of $1.22.
- Price Action: LITE shares traded higher by 8.72% at $89.30 in the premarket on the last check Wednesday.
