Equities Analysts Offer Predictions for Lumentum Q2 Earnings

Key Points

• Lumentum beat quarterly earnings expectations: It reported $4.57 per share versus the $4.22 consensus, while revenue of $1.26 billion matched estimates and rose 136.5% year over year.
• Northland Securities raised its Q2 2027 EPS forecast to $4.85 from $4.63, and projected EPS of $5.33 for Q3 and $5.83 for Q4; analysts’ full-year consensus is $19.93 per share.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $1,081.61, though some firms recently lowered their targets.

Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) - Stock analysts at Northland Securities lifted their Q2 2027 earnings estimates for Lumentum in a research report issued to clients and investors on Tuesday, November 3rd. Northland Securities analyst T. Savageaux now anticipates that the technology company will earn $4.85 per share for the quarter, up from their prior estimate of $4.63. The consensus estimate for Lumentum's current full-year earnings is $19.93 per share. Northland Securities also issued estimates for Lumentum's Q3 2027 earnings at $5.33 EPS and Q4 2027 earnings at $5.83 EPS.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share for the quarter, beating the consensus estimate of $4.22 by $0.35. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The business had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter last year, the company earned $1.10 earnings per share. The firm's revenue was up 136.5% on a year-over-year basis.

A number of other analysts have also recently issued reports on the company. Deutsche Bank Aktiengesellschaft initiated coverage on Lumentum in a research report on Monday, August 31st. They set a "buy" rating and a $1,200.00 price objective on the stock. Mizuho set a $1,132.00 target price on Lumentum in a research note on Monday, November 2nd. Needham & Company LLC reduced their target price on Lumentum from $1,040.00 to $800.00 and set a "buy" rating for the company in a research report on Tuesday, November 3rd. Susquehanna decreased their price target on shares of Lumentum from $1,100.00 to $950.00 and set a "positive" rating on the stock in a research note on Tuesday, November 3rd. Finally, Zacks Research downgraded shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 12th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $1,081.61.

Lumentum Price Performance

Shares of LITE stock opened at $538.59 on Monday. Lumentum has a 12 month low of $215.35 and a 12 month high of $1,143.00. The company has a market capitalization of $48.85 billion, a P/E ratio of -6.84 and a beta of 1.64. The stock has a 50 day moving average of $894.13 and a two-hundred day moving average of $801.60. The company has a current ratio of 1.61, a quick ratio of 1.27 and a debt-to-equity ratio of 0.01.

Institutional Trading of Lumentum

Several institutional investors have recently bought and sold shares of LITE. Jupiter Topco LLC acquired a new position in Lumentum during the 2nd quarter worth $1,621,396,000. WT Asset Management Ltd bought a new position in Lumentum in the 2nd quarter valued at $494,688,000. Legal & General Group Plc bought a new position in Lumentum in the 2nd quarter valued at $376,539,000. Amundi boosted its position in Lumentum by 188.7% in the 2nd quarter. Amundi now owns 658,427 shares of the technology company's stock valued at $564,970,000 after buying an additional 430,355 shares during the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of Lumentum by 163.2% in the 1st quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company's stock valued at $398,590,000 after buying an additional 351,676 shares during the period. Institutional investors and hedge funds own 94.05% of the company's stock.

Insider Buying and Selling

In other news, insider Yuen Wupen sold 307 shares of the company's stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total value of $290,115.00. Following the sale, the insider directly owned 108,320 shares in the company, valued at approximately $102,362,400. This represents a 0.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the company's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the completion of the sale, the chief financial officer owned 75,074 shares in the company, valued at approximately $78,715,089. This represents a 24.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 94,496 shares of company stock worth $85,978,498 over the last ninety days. Company insiders own 0.28% of the company's stock.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Some commentary sees Lumentum as potentially undervalued after Marvell agreed to acquire it, arguing the deal highlights demand for optical interconnects—a potential bottleneck in AI data centers. Lumentum’s shares also rose alongside a broader recovery in optical stocks. Article: Lumentum Holdings Could Be 90% Undervalued Following The Marvell Deal Article: Optical stocks rally
• Neutral Sentiment: The proposed all-stock Marvell deal values Lumentum at about $115 billion, with Lumentum shareholders set to receive 4.5 Marvell shares per share. That is not a fixed cash offer: its implied value will move with Marvell’s stock. The transaction is expected to take time to close and remains subject to regulatory approval. Article: Marvell Agreed to Pay $1,132 a Share for Lumentum
• Positive Sentiment: A bullish technical view says Lumentum is oversold after a steep decline, while analysts’ earnings-estimate increases could support a recovery. Article: Lumentum is Poised for a Turnaround
• Negative Sentiment: Recent pressure reflects a broader sell-off in AI and optical shares, alongside analyst downgrades and lower price expectations. The sharp recent declines suggest investors remain cautious despite the proposed acquisition and the latest rebound. Article: Lumentum Shares Down After Analyst Downgrade Article: AI optical stocks slide

About Lumentum

Lumentum Holdings Inc develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks.

The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world.

Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.

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