Apple supplier Lumentum Holdings on Tuesday reported fiscal fourth-quarter earnings and sales that topped estimates. But LITE stock plunged as guidance came in below expectations.
Lumentum earnings for the period ended July 2 came in at $1.47 per share, up 24% from a year earlier. Revenue climbed nearly 8% to $422.1 million.
Analysts expected Lumentum to earn $1.33 per share, up 15%, with revenue climbing 6% to $418 million.
The maker of fiber-optic components reported before the market open. LITE stock results did not include recently acquired NeoPhotonics. But Lumentum's first quarter fiscal 2023 guidance includes NeoPhotonics. The deal closed Aug. 3.
LITE Stock: Earnings Guidance Light
For the first quarter of fiscal year 2023, Lumentum said it expects earnings in a range of $1.45 to $1.70 a share. Analysts had predicted earnings of $1.81. The company forecast fiscal first-quarter revenue of $505 million, topping views of $491 million.
Lumentum did not provide a full-year outlook.
LITE stock sank 6.9% to close at 89.60 on the stock market today.
Analysts said Lumentum's fiscal 2023 earnings guidance could be impacted by accounting rules related to a higher share count from convertible debt used to finance the NeoPhotonics deal.
Heading into the Lumentum earnings report, LITE stock owned a Relative Strength Rating of 73 out of a best-possible 99, according to IBD Stock Check-up.
Apple remains Lumentum's biggest customer, though industrial lasers and data center components also grow sales. Lumentum sells Apple 3D sensors built into iPhones.
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