Latest news with #Lumentum
Forbes
14 hours ago
- Business
- Forbes
Why Lumentum Stock Could Have 20% Upside Potential
Shares of Lumentum Holdings (LITE) gained momentum after the optical and photonic products manufacturer raised its fiscal fourth-quarter guidance above prior expectations and announced it will reach a key revenue milestone sooner than anticipated. What does Lumentum do? Lumentum designs and manufactures optical and photonic products enabling optical networking and laser applications worldwide and has expertise in foundational Technologies critical to AI. Lumentum's upbeat outlook, strong competitive positioning, robust and innovative product technology, and strategic shift of manufacturing footprint out of China into Thailand appear to be positive developments for investors. Improved Guidance: The company now expects to achieve $500 million in quarterly revenue in Q1 FY26 - one quarter ahead of its previous timeline—signaling stronger-than-expected business momentum. For Q4, Lumentum raised its adjusted earnings per share (EPS) forecast to $0.78–$0.85, up from prior guidance of $0.70–$0.80, and ahead of the $0.75 consensus. This is way higher than the $0.57 eps that it reported for Q3. It also revised its revenue outlook upward to $465 million–$475 million, compared to the previous range of $440 million–$470 million, topping the $457.46 million consensus estimate. This is also sequentially higher from the $425.2 million reported for Q3. The operating margin forecast was raised as well, now projected at 14%–15%, versus the earlier 13%–14% range, also higher than 10.8% operating margin in Q3. Lumentum reaffirmed its longer-term goal of reaching $600 million in quarterly revenue by Q4 FY26 or Q1 FY27. The updated guidance is higher sequentially and reinforces confidence in Lumentum's growth prospects. The company sees its markets growing at a greater than 25% compound annual growth rate over the next five years, driven by an accelerating convergence of optics and electronics. Lumentum has long-term goals of revenue of $750 million a quarter (or $3 billion a year), gross margins above 40% and operating margins greater than 20%. Majority of revenue growth and Greater than 1100 bps of margin expansion are expected to come from AI and cloud businesses. Strong competitive positioning: Despite broader uncertainty, Lumentum's cloud business continues to remain a bright spot. Cloud & Networking revenue climbing 8% quarter-over-quarter and 16% year-over-year on strong hyperscaler demand. Lumentum builds optical components for every type of network virtually. Lumentum said in its Q3 earnings call that it has already secured three major cloud transceiver customer wins and more are expected, thanks to its components being embedded throughout the ecosystem, including within competitor transceivers. In other words, even when a rival supplies the full module, Lumentum still benefits. In Q4, Lumentum expects its overall cloud transceiver revenue to grow over 50% sequentially. It set a record for its EML chipset shipments in the third quarter of 2025, and remains on track to more than double this business by the end of calendar 2025. Strategic navigation of tariff landscape: Higher material costs and tariffs will dent Lumentum's Q4 gross margin by 100-basis-points, yet it sees a sequential increase in gross margins from Q3. Lumentum's decision to expand manufacturing in Thailand while moving out of China looks like smart hedging in an increasingly volatile trade landscape. With Trump's unpredictability and Xi Jinping's hardline posture, a quick resolution to the China-U.S. standoff seems unlikely. For most of its shipments, Lumentum is not the importer of record, which has simplified tariff-related conversations with customers. As the company explained on its Q3 earnings call: Risks LITE's 1-Year Price Return: 80% vs. S&P 500's 12% LITE's 6-month Price Return: -11.6% vs. S&P 500's -1.4%. Lumentum Stock Valuation Lumentum shares are currently trading 20% off their 52-week intraday-high of $104. LITE has a forward Price-to-earnings/Growth (PEG) of 0.60. A PEG below 1 typically suggests a stock may be undervalued relative to its growth prospects. LITE's forward PEG is also way below the sector average of 1.73 and its own 5-year historical average of 1.95. A conservative rerating of PEG to just 0.75 represents about 25% upside from current price levels of around $82, implying a number in the proximity of its 52-week intraday high. Please note that I am not a registered investment advisor and readers should do their own due diligence before investing in the stocks mentioned in the article, or any other stock. I am not responsible for the investment decisions made by individuals after reading this article. Readers are asked not to rely on the opinions and analysis expressed in the article and encouraged to do their own research before investing.
Yahoo
5 days ago
- Business
- Yahoo
Lumentum price target raised to $90 from $80 at Raymond James
Raymond James raised the firm's price target on Lumentum (LITE) to $90 from $80 and keeps a Strong Buy rating on the shares. Lumentum beat the quarter and raised September/December 2025 estimates, but left the June/September 2026 $600M sales target unchanged, the analyst tells investors in a research note. The firm sees meaningful upside to Street estimates. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on LITE: Disclaimer & DisclosureReport an Issue Lumentum price target raised to $73 from $65 at B. Riley Lumentum price target raised to $76 from $70 at Morgan Stanley Lumentum price target raised to $105 from $94 at Rosenblatt Lumentum Holdings: Hold Rating Amid Valuation Concerns and Competitive Pressures Closing Bell Movers: Guidewire up 11% after Q3 beat, guidance raise Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Lumentum stock rises on raised guidance
-- Shares of Lumentum Holdings (NASDAQ: NASDAQ:LITE) climbed 6% after-hours following the company's updated guidance revealed in a recent slide presentation. The optical and photonic products manufacturer adjusted its fourth-quarter net revenue forecast from the previous range of $440 million to $470 million to a new range of $465 million to $475 million, surpassing the consensus estimate of $457.1 million. The company also improved its operating margin outlook, now expecting 14% to 15% compared to the prior 13% to 14%. Additionally, Lumentum's adjusted earnings per share (EPS) for the fourth quarter are now anticipated to be between 78 cents and 85 cents, up from the earlier estimate of 70 cents to 80 cents, and above the analyst expectation of 74 cents. In a longer-term projection, Lumentum anticipates achieving $500 million in revenue in the first quarter of 2026, which is one quarter earlier than previously expected. The company's revenue outlook of $600 million per quarter remains unchanged, with expectations to reach this target by the fourth quarter of FY26 or the first quarter of FY27. The updated guidance suggests that Lumentum is on track to accelerate its revenue growth and improve profitability ahead of its initial schedule. This positive revision in the company's financial outlook is the primary driver behind the stock's upward movement. Related articles Lumentum stock rises on raised guidance Wells Fargo stock rises after Fed lifts growth restrictions Goldman Sachs starts coverage on auto services stock with mixed ratings Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
19-05-2025
- Business
- Business Wire
Lumentum Announces Inducement Grant Under Listing Rule 5635(c)(4) of The Nasdaq Stock Market
SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. ('Lumentum' or the 'Company'), a market-leading designer and manufacturer of innovative optical and photonic products for cloud/AI, networking, and industrial applications, today announced that on May 15, 2025, it granted to Rafik Ward, the Company's SVP, Corporate Development and Chief Marketing Officer, restricted stock units covering 31,412 shares of Lumentum's common stock that will vest as to 1/4 of the award on the one year anniversary of the grant date and as to the remaining 3/4 of the award in substantially equal quarterly installments over the subsequent twelve calendar quarters, subject to Mr. Ward's continued employment with Lumentum through the applicable vesting date. The award was granted pursuant to Lumentum's 2025 Inducement Equity Incentive Plan. However, such awards will be subject to substantially the same terms and conditions that apply to awards granted under Lumentum's 2015 Equity Incentive Plan, as amended. About Lumentum Lumentum (NASDAQ: LITE) is a market-leading designer and manufacturer of innovative optical and photonic products enabling cloud, optical networking, and laser applications worldwide. Lumentum optical components and subsystems are part of virtually every type of data center, telecom, and enterprise network. Lumentum lasers enable advanced manufacturing techniques and diverse applications including next-generation 3D sensing capabilities. Lumentum is headquartered in San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on LinkedIn, Twitter, Facebook, Instagram, and YouTube. Category: Financial
Business Wire
15-05-2025
- Business
- Business Wire
SCIP Debuts to Fix the Foundation of Global Supply Chains, Launching With $1M in Annual Recurring Revenue and Zero Fat
SAN FRANCISCO--(BUSINESS WIRE)--Today marks the public launch of SCIP (Supply Chain Intelligence Platform), an enterprise SaaS startup helping companies move from reactive scrambling to proactive, data-driven supply chain decisions. Without raising large rounds or scaling up a massive team, SCIP reached more than $1 million in annual recurring revenue with just its founding team—proof that its value proposition is resonating across the electronics, medical device and contract manufacturing sectors. Founded by supply chain veteran and technologist Andy Kohm, SCIP was co-founded by Dave Blado, a former engineering leader at Red Hat and eBay, and Jay Bartels, who previously helped scale early SaaS supply chain platforms at Commerce One and Webify. The platform is designed for one purpose: to fix the fragmented, inconsistent, and unreliable data that keeps supply chain teams from acting quickly and confidently. In a world shaped by tariffs, compliance pressure, and supply shocks, data integrity isn't a luxury—it's a prerequisite. A Platform Built for Today's Uncertainty 2025 has brought renewed urgency to supply chain modernization. With tariffs on imports and global compliance requirements growing more stringent, legacy tools—or worse, spreadsheets—aren't cutting it. In addition to increasing complexity, data is most often scattered, unverified, and disconnected. SCIP delivers a centralized, AI-powered intelligence layer that unifies data from internal systems, third-party providers, and SCIP's proprietary part and vendor datasets. The result is a single source of truth—enriched, validated, and immediately actionable. 'We didn't build SCIP to give people another dashboard,' said Andy Kohm, chief executive officer and founder. 'We built it to maximize the value of a customer's data. SCIP helps you go from chaos to clarity and from reaction to prevention.' Why Customers Choose SCIP Early adopter Lumentum, a global leader in optical and photonic products, is already leveraging SCIP to tackle part-level risk, automate compliance, and improve sourcing agility—all without overhauling existing systems. Lumentum uses SCIP to unify data across sourcing and engineering, gain visibility into part-level lifecycle risk, and automate compliance with country-of-origin and vendor policies. 'Before SCIP, managing the consistency and integrity of our parts and vendor data was a constant challenge,' said a Lumentum supply chain executive. 'Now, we have unparalleled accuracy and reliability in our data, which has fundamentally improved our operational decision-making.' Key Features: AI-powered data cleanup and augmentation across part attributes, lifecycle status, compliance flags, country of origin, lead times, and pricing—creating the clean, structured foundation needed for effective AI and automation. Workflow automation and real-time alerts to reduce manual effort, surface risk, and drive speed Prescriptive visualizations that highlight critical paths, sourcing alternatives, supply chain optimization opportunities, and profit optimization scenarios Complete country-of-origin intelligence at the part, vendor, and bill of materials (BOM) level for regulatory compliance and tariff mitigation Unlimited seat access so cross-functional teams—from engineering to operations to sourcing—can collaborate in one system A standout feature is SCIP's ability to highlight the critical path within a BOM and show what parts are most likely to delay production. If a China-origin part is at risk, SCIP suggests alternatives, fetches pricing from verified distributors, and enables instant quote requests, without modifying the full BOM or triggering engineering rework. Seed Funding (Without the Headlines) While most startups shout about fundraising, SCIP prefers to let product and customer traction speak for itself. The company quietly raised a seed round led by Inspiration Ventures and CARAT Venture Partners, two early-stage firms with a track record of backing category-defining infrastructure plays. 'The future of supply chains will be built on real-time intelligence, not reaction. Companies that fail to fix their data foundations today will struggle to compete tomorrow. SCIP gives teams the tools they need now to operate faster, smarter, and more resiliently in a world where speed and precision are everything,' said Lars Uffhausen, Managing General Partner at CARAT. 'At CARAT, we see SCIP as a critical enabler for the next generation of global leaders—and we're proud to back their vision.' What's Next for SCIP SCIP is onboarding a growing list of customers across electronics, contract manufacturing, and medtech. With ROI benchmarks showing a 30x return, 75% increase in data integrity, and 80% lower software seat costs, the platform is already making a bottom-line impact. To learn more, visit or request a demo at contact@ About SCIP SCIP (Supply Chain Intelligence Platform) helps companies make smarter, faster supply chain decisions by turning fragmented and unreliable data into a centralized source of truth. The platform uses proprietary AI agents to consolidate, clean, and enrich supply chain data from across systems, delivering real-time insights, automated workflows, and prescriptive analytics. Founded by a team of supply chain and enterprise software veterans, SCIP is built to scale with the complexity of global operations—and to help teams move from reaction to prevention. To learn more,
