Shares of optical and photonic products manufacturer Lumentum Holdings Inc LITE are trading lower Thursday after the company reported preliminary fiscal third-quarter results. Multiple analysts cut price targets on the stock following the release.
What Happened: Lumentum now expects third-quarter revenue to be in a range of $380 million to $384 million versus estimates of $444.15 million. The company previously guided for quarterly revenue of $430 million to $460 million.
"Late in our fiscal 2023 third quarter, a network equipment manufacturer who represented more than 10 percent of our fiscal second quarter revenue informed us that due to their inventory management, they would not take the shipments we had originally projected for the quarter," said Alan Lowe, president and CEO of Lumentum.
"This shortfall is the primary reason that our fiscal 2023 third quarter revenue will be below the low end of our prior guidance range."
Lumentum's board approved an increase of $1.2 billion for the company's buyback program.
Analyst Assessment: Multiple analyst firms lowered price targets on Lumentum Thursday.
- Rosenblatt analyst Mike Genovese downgraded Lumentum from Buy to Neutral and lowered the price target from $77 to $48.
- Needham analyst Alex Henderson maintained Lumentum with a Buy and lowered the price target from $72 to $59.
- Barclays analyst Tom O'Malley maintained Lumentum with an Overweight and lowered the price target from $65 to $55.
Lumentum is set to report financial results before the market open on May 9.
LITE Price Action: Lumentum has a 52-week high of $96.45. It's making new 52-week lows on Thursday.
The stock was down 15.2% at $43.50 at time of publication, per Benzinga Pro.
This illustration was generated using artificial intelligence via MidJourney.
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