Lumentum (NASDAQ:LITE) Releases Q1 2027 Earnings Guidance

Key Points

• Lumentum issued Q1 2027 guidance for adjusted EPS of $4.05–$4.35, above the $3.55 consensus estimate, and revenue of $1.2–$1.3 billion versus the $1.2 billion consensus.
• Analyst sentiment remains favorable, with 14 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $1,012.67. Several firms recently raised their targets, including Loop Capital to $1,400.
• Lumentum shares rose 0.9% to $820.59, while AI-driven demand for optical networking and data-center infrastructure supports the outlook; however, investors remain concerned about the stock’s elevated valuation.

Lumentum (NASDAQ:LITE - Get Free Report) updated its first quarter 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 4.050-4.350 for the period, compared to the consensus estimate of 3.550. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.2 billion.

Analysts Set New Price Targets

Several equities research analysts recently commented on LITE shares. B. Riley Financial reiterated a "buy" rating on shares of Lumentum in a research report on Friday, May 1st. Barclays lifted their price objective on Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Craig Hallum increased their price objective on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Zacks Research lowered Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, Loop Capital lifted their price objective on shares of Lumentum from $900.00 to $1,400.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Fourteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $1,012.67.

Lumentum Stock Up 0.9%

Shares of LITE stock traded up $7.08 during trading hours on Tuesday, reaching $820.59. The company had a trading volume of 5,196,410 shares, compared to its average volume of 5,711,799. The company has a market cap of $63.84 billion, a price-to-earnings ratio of 151.96 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. Lumentum has a 12 month low of $111.20 and a 12 month high of $1,085.68. The business has a fifty day simple moving average of $813.40 and a 200-day simple moving average of $760.16.

Insider Buying and Selling

In related news, insider Yuen Wupen sold 3,210 shares of the firm's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the sale, the insider owned 81,488 shares in the company, valued at approximately $77,735,477.60. This trade represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Isaac Hosojiro Harris sold 4,000 shares of Lumentum stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the completion of the sale, the director directly owned 8,400 shares in the company, valued at $7,224,000. This trade represents a 32.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 23,827 shares of company stock valued at $22,051,069 over the last quarter. Corporate insiders own 0.43% of the company's stock.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts say Lumentum is well positioned for fourth-quarter growth because AI infrastructure is increasing demand for optical networking equipment. The earnings report and outlook could reinforce the company’s role as a key supplier to expanding data-center networks. Lumentum well-positioned for Q4 on AI-infrastructure-driven growth, say analysts
• Positive Sentiment: Goldman Sachs argues that the next phase of the AI investment cycle is shifting from processors to the optical and fiber equipment needed to connect AI systems. That rotation places Lumentum within a favored segment of the AI infrastructure trade. Goldman Sachs Says These Are AI’s Next Big Winners
• Positive Sentiment: Market commentary describes Lumentum’s components as crucial to the ongoing AI data-center buildout, with no clear evidence that skepticism about data-center construction is slowing current business momentum. Cory Johnson on LITE’s role in the AI buildout
• Neutral Sentiment: Retail traders are comparing LITE with Coherent, Applied Optoelectronics and IPG Photonics as AI data centers accelerate the transition from copper to optical connectivity. The comparison increases visibility for Lumentum but also highlights intense competition within photonics. LITE versus other photonics stocks
• Negative Sentiment: Investors remain concerned that Lumentum’s elevated valuation leaves little room for disappointment, making the upcoming results and guidance particularly important. AI-optics stocks also recently cooled as traders took profits ahead of earnings. Is Lumentum’s valuation too rich? AI optics stocks cool ahead of earnings

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Truvestments Capital LLC boosted its position in shares of Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after acquiring an additional 57 shares during the period. Triumph Capital Management bought a new position in Lumentum in the 4th quarter worth about $30,000. Zions Bancorporation National Association UT purchased a new position in shares of Lumentum during the fourth quarter worth about $42,000. Brown Brothers Harriman & Co. bought a new stake in Lumentum during the fourth quarter valued at approximately $44,000. Finally, Danske Bank A S purchased a new stake in shares of Lumentum during the 3rd quarter valued at $33,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

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