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Shares ofLumentum Holdings Inc.(NASDAQ: LITE) jumped today after the optics specialist posted better-than-expected results in its second-quarter earnings report. As of 10:46 a.m. EST, the stock was up 12%.
Lumentum posted an adjusted earnings per share of $0.57 in the quarter, better than both estimates of $0.51 and $0.49 it posted a year ago. Revenue grew 21% to $265 million, beating the company's own guidance and falling just short of the analyst consensus at $265.7 million.
CEO Alan Lowe noted, "Strong growth in new product revenue, particularly 100G Datacom, which was up 124% sequentially and more than 500% year over year, drove operating margin to a new record high of 14.7%."
For the current quarter, Lumentumexpects of $0.46-$0.54 and revenue of $250 million-$265 million. That compares to a $0.32-per-share profit a year ago and revenue of $230.4 million. For the current quarter, analysts were expecting EPS of $0.47 and revenue of $263.8 million.
Image source: Lumentum.
Fiber-optics stocks like Lumentum have been big winners in the market in recent years as analysts see strong growth in the industry, with demand from telecoms and cable companies growing quickly. Lumentum has beaten earnings estimates in each of the last four quarters, and with the industry tailwinds, the stock should continue to move higher as long as it stays ahead of analysts.
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