Lumentum (NASDAQ:LITE) Announces Q2 2027 Earnings Guidance

Key Points

• Lumentum guided above consensus for fiscal Q2 2027, forecasting adjusted EPS of $5.90–$6.20 versus the $4.98 analyst estimate and revenue of approximately $1.6 billion versus $1.5 billion expected.
• The company’s latest quarter also exceeded expectations, with EPS of $4.57 versus $4.22 projected and revenue up 136.5% year over year to $1.26 billion.
• Shares fell 18.6% amid investor concerns about Lumentum’s proposed all-stock acquisition by Marvell, including dilution, valuation and integration risks; analysts remain moderately bullish overall, with an average price target of $1,052.17.

Lumentum (NASDAQ:LITE - Get Free Report) issued an update on its second quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 5.900-6.200 for the period, compared to the consensus estimate of 4.980. The company issued revenue guidance of $1.6 billion, compared to the consensus revenue estimate of $1.5 billion.

Lumentum Trading Down 18.6%

Shares of Lumentum stock opened at $684.40 on Tuesday. Lumentum has a 52-week low of $184.20 and a 52-week high of $1,143.00. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The firm has a 50-day moving average of $919.26 and a 200-day moving average of $796.61. The stock has a market cap of $61.99 billion, a PE ratio of -8.33 and a beta of 1.53.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.22 by $0.35. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the previous year, the firm posted $1.10 EPS. The business's revenue for the quarter was up 136.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Lumentum will post 19.79 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts recently issued reports on LITE shares. Mizuho set a $1,132.00 price target on Lumentum in a research note on Monday. Citigroup raised their price objective on Lumentum from $1,200.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Monday, September 28th. TD Cowen lifted their price objective on Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a report on Wednesday, August 12th. Evercore assumed coverage on Lumentum in a research report on Monday, August 31st. They set an "outperform" rating and a $1,100.00 target price for the company. Finally, Weiss Ratings lowered Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a report on Wednesday, August 19th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $1,052.17.

Insider Buying and Selling at Lumentum

In other news, CFO Wajid Ali sold 24,542 shares of the business's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the completion of the transaction, the chief financial officer owned 75,074 shares of the company's stock, valued at approximately $78,715,089. The trade was a 24.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the company's stock in a transaction 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 owned 108,320 shares of the company's stock, valued at approximately $102,362,400. This represents a 0.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 94,496 shares of company stock valued at $85,978,498 over the last 90 days. Corporate insiders own 0.28% of the company's stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum reported fiscal first-quarter adjusted earnings of $4.57 per share, exceeding the $4.22 consensus estimate, while revenue of $1.26 billion was in line with expectations and rose 136.5% year over year. Lumentum Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: The company guided to fiscal second-quarter earnings of $5.90–$6.20 per share and revenue of approximately $1.6 billion, above analyst expectations of $4.98 per share and $1.5 billion, signaling continued strength in AI-related optical demand.
• Positive Sentiment: Rosenblatt Securities maintained a “buy” rating and set a $900 price target, suggesting substantial potential upside from recent trading levels.
• Neutral Sentiment: Marvell agreed to acquire Lumentum in an all-stock transaction offering 4.5 Marvell shares for each Lumentum share. The combination is intended to create a major AI-connectivity platform by joining Marvell’s custom silicon with Lumentum’s optical components. Marvell and Lumentum to Combine
• Negative Sentiment: Investors have reacted negatively to the transaction because it is entirely stock-funded, raising concerns about dilution, the deal’s large valuation, integration risk and limited near-term upside. Falling Marvell shares also reduce the effective value of Lumentum’s consideration. MRVL and LITE Downgraded
• Negative Sentiment: B. Riley Financial downgraded Lumentum from “buy” to “neutral,” with a $770 price target. Investor-rights law firms are also reviewing whether the proposed consideration fairly values Lumentum shareholders, adding uncertainty around deal approval and terms. LITE Shareholder Investigation

Lumentum Company Profile

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.

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