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Lumentum Jumps to 52-Week High After Earnings Beat, Raised Guidance

A day after an initial drop, the shares rebounded as fresh price-target hikes followed guidance calling for more than 20% sequential revenue growth.

Overview

  • The stock surged Wednesday to an intraday high of $240.71 and closed up 23.6% at $232.75, after falling 5.6% to $188.36 on Tuesday following the report.
  • Fiscal Q1 EPS came in at $1.10 versus $1.03 expected, with revenue of $533.8 million topping the $525.4 million consensus.
  • For Q2, Lumentum guided adjusted EPS to $1.30–$1.50 and sales to $630–$670 million, well above projections near $560 million.
  • Management highlighted 58% year-over-year revenue growth and more than 1,500 basis points of non-GAAP operating margin expansion, and reported a swing to $4.2 million in net income from an $82.4 million loss a year ago.
  • Analysts raised targets while keeping bullish ratings: Needham to $235 (Buy), Rosenblatt to $280 (Buy), and Wolfe Research to $240 (Outperform).