Lumentum (LITE) Q4 Earnings Top Estimates, Revenues Rise Y/Y
Zacks Investment Research | Aug 08, 2019 11:03PM ET
Lumentum Holdings (NASDAQ:LITE) reported fourth-quarter fiscal 2019 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 73 cents. However, the figure decreased 3.2% year over year.
Net revenues of $404.6 million also beat the Zacks Consensus Estimate of $385 million and increased 34.4% from the year-ago quarter, driven by strong growth in Optical Communications segment.
Top-Line Details
Optical Communications segment (88.2% of net revenues) revenues surged 45.7% year over year to $356.8 million.
Within the segment, telecom (63.8% of Optical revenues) revenues rose 71.1% year over year to $227.7 million. Within telecom, transport revenues increased nearly 50% year over year. Growth in other customers partially offset lower shipments to Huawei in the reported quarter.
Despite geopolitical disruptions, the company benefited from coherent transmission modules and Reconfigurable Optical Add-Drop Multiplexer (ROADM). Higher speed transmission products, Analog Coherent Optics (ACO) and Digital Coherent Optics (DCO) both reported sales growth for the quarter. Lumentum expects these product lines to further improve telecom revenue-mix in fiscal 2020.
Datacom (11.6% of Optical revenues) revenues increased 20.3% year over year to $41.5 million. Higher customer engagement in new Datacom photonic chips, including 5G wireless applications, drove revenue growth in the reported quarter.
Datacom’s Japan-based transceiver product line divestiture closed in fourth quarter. Lumentum expects revenues from datacom transceiver product lines to decline to zero over the next four to five quarters.
Industrial and consumer (24.6% of Optical revenues) revenues increased 13.3% year over year to $87.6 million driven by higher industrial diode and 3D sensing revenues.
Commercial Laser segment (11.8% of net revenues) revenues decreased 14.9% to $47.8 million.
Per management, sales to Huawei were down 25% sequentially in the fourth quarter and are expected to be flat to down in the first quarter of fiscal 2020.
Lumentum Holdings Inc. Price, Consensus and EPS Surprise
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