Lumentum Holdings Inc. (LITE) delivered strong fourth-quarter financial results, surpassing analysts’ expectations and providing a positive outlook for the upcoming quarter. The company reported earnings of 6 cents per share, exceeding the consensus estimate of 3 cents per share. Revenue reached $308.30 million, outperforming the anticipated $300.80 million.
This robust performance was attributed to record orders for datacom chips used in data center applications, coupled with a positive trend in the broader traditional networking market. Alan Lowe, President and CEO of Lumentum, emphasized the company’s progress in expanding its customer base in the cloud and AI sectors, predicting accelerated growth in 2025.
Looking ahead, Lumentum projects fiscal first-quarter net revenue in the range of $315 million to $335 million, with non-GAAP diluted earnings per share estimated at 7 cents to 17 cents.
Following the earnings announcement, analysts adjusted their price targets for Lumentum. Needham analyst Alex Henderson maintained a Buy rating and raised the price target from $65 to $70. Rosenblatt analyst Mike Genovese also maintained a Buy rating, increasing the price target from $65 to $69. B. Riley Securities analyst Dave Kang kept a Neutral rating but raised the price target from $40 to $50. Barclays analyst Tom O’Malley maintained an Underweight rating and boosted the price target from $38 to $40.
Lumentum’s strong Q4 performance and optimistic outlook suggest continued growth in the data center and cloud computing markets, driving positive sentiment among investors.
