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Lumentum One Of The First Companies To Cut Guidance After Huawei Ban

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Lumentum One Of The First Companies To Cut Guidance After Huawei Ban

Telecom supplier Lumentum Holdings Inc (NASDAQ: LITE) shares were trading lower Monday after the firm lowered its fourth-quarter earnings per share and sales guidance.

Lumentum shares were down by 3.2 percent at $44.76 at the time of publication Monday. 

Lumentum released a statement saying it intends to fully comply with the license requirements imposed by the U.S. Department of Commerce. Lumentum said it has discontinued all shipments to Huawei effective as of the date the licensing requirements went into effect and cannot predict when it will be able to resume shipments.

For the fiscal year ending June 30, 2018, Lumentum sales to Huawei represented 11 percent of total revenue.

In the third quarter of 2019 ending March 30 sales to Huawei represented approximately 18 percent of total revenue. Sales to Huawei have represented approximately 15 percent of Lumentum's total revenue year-to-date in fiscal 2019.

Lumentum adjusted its fourth-quarter non-GAAP diluted net income per share guidance from a range of 85 cents to $1 per share to a range of 65-77 cents. The consensus estimate is 92 cents.

Its net sales guidance was cut from a range of $405 million to $425 million to  range of $375 million to $390 million against a $415.4-million consensus estimate. 

Related Links: 

MKM Partners, Rosenblatt Remain Lumentum Bulls After Q3 Print

JPMorgan Double Upgrades Lumentum Amid Stronger Telecom Market

Posted-In: HuaweiNews Guidance Best of Benzinga

 

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