Lumentum Holdings Inc. (NASDAQ:LITE) posted better-than-expected second-quarter financial results on Thursday.

Lumentum posted adjusted earnings of 32 cents per share, compared to market estimates of 30 cents per share. The company’s quarterly sales came in at $366.80 million versus estimates of $363.32 million, according to data from Benzinga Pro.

Lumentum said it sees third-quarter adjusted earnings of 20 cents to 35 cents per share on revenue of $350 million to $380 million.

"Lumentum stands at the leading edge of photonics innovation, partnering with customers to enable the future of data centers and the networks that connect them. Given the surging bandwidth demands of AI data centers, and our strong traction on new transceiver opportunities, we are strategically expanding our leading-edge transceiver manufacturing capacity. As a key part of this expansion, we are investing in state-of-the-art production lines at our manufacturing facility in Thailand. This factory has proven photonics manufacturing capabilities and has received numerous customer accolades, giving us confidence in our ability to ramp rapidly. We will be ramping capacity this summer and expect to lead the first wave of 1.6T transceivers for multiple customers at this site," said Alan Lowe, President and CEO.

Lumentum shares rose 8.8% to trade at $49.60 on Friday.

These analysts made changes to their price targets on Lumentum after the company reported quarterly results.

• Rosenblatt raised the price target on Lumentum from $60 to $65. Rosenblatt analyst Mike Genovese maintained a Buy rating.
• Susquehanna cut the price target on Lumentum from $65 to $60. Susquehanna analyst Christopher Rolland maintained a Positive rating.
• Needham analyst Alex Henderson reiterated Lumentum Holdings with a Buy and maintained a $50 price target.

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