Research Analysts Set Expectations for Lumentum Q1 Earnings

Key Points

• Northland Securities raised its Q1 2027 EPS estimate for Lumentum to $3.02 from $2.74, and also boosted its longer-term quarterly and full-year forecasts.
• Lumentum’s latest earnings beat expectations, with Q3 revenue up 90.1% year over year to $808.4 million and EPS of $2.37 topping the consensus estimate.
• Analyst sentiment remains broadly positive: several firms lifted price targets, and MarketBeat says Lumentum now carries a Moderate Buy consensus with a target price of about $1,012.43.

Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) - Investment analysts at Northland Securities lifted their Q1 2027 earnings per share (EPS) estimates for shares of Lumentum in a report released on Wednesday, May 6th. Northland Securities analyst T. Savageaux now forecasts that the technology company will earn $3.02 per share for the quarter, up from their previous forecast of $2.74. The consensus estimate for Lumentum's current full-year earnings is $5.95 per share. Northland Securities also issued estimates for Lumentum's Q2 2027 earnings at $3.73 EPS, Q3 2027 earnings at $4.02 EPS, Q4 2027 earnings at $4.23 EPS and FY2027 earnings at $14.97 EPS.

Other analysts have also recently issued reports about the company. Craig Hallum raised their price target on Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. BNP Paribas Exane raised their price target on Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. Weiss Ratings reissued a "hold (c)" rating on shares of Lumentum in a report on Tuesday, April 21st. Stifel Nicolaus raised their price target on Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Thirteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,012.43.

Lumentum Stock Up 16.5%

LITE opened at $1,053.09 on Tuesday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The business has a 50 day simple moving average of $787.25 and a 200-day simple moving average of $514.43. The stock has a market capitalization of $81.93 billion, a P/E ratio of 195.02 and a beta of 1.53. Lumentum has a 12 month low of $69.26 and a 12 month high of $1,073.33.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company's revenue for the quarter was up 90.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently bought and sold shares of the company. PNC Financial Services Group Inc. increased its stake in Lumentum by 5.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 8,304 shares of the technology company's stock valued at $5,836,000 after purchasing an additional 450 shares in the last quarter. Oslo Pensjonsforsikring AS purchased a new position in Lumentum during the first quarter worth $223,000. Titan Global Capital Management USA LLC purchased a new position in Lumentum during the first quarter worth $14,332,000. Commerzbank Aktiengesellschaft FI purchased a new position in Lumentum during the first quarter worth $225,000. Finally, Meeder Asset Management Inc. purchased a new position in Lumentum during the first quarter worth $63,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Lumentum

In related news, insider Vincent Retort sold 45,026 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $591.32, for a total value of $26,624,774.32. Following the completion of the transaction, the insider directly owned 102,455 shares of the company's stock, valued at $60,583,690.60. This trade represents a 30.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the transaction, the insider directly owned 88,439 shares of the company's stock, valued at $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 60,926 shares of company stock valued at $36,254,801. Company insiders own 0.43% of the company's stock.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, a major milestone that can drive passive fund buying and increased investor interest. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Citic Securities lifted its price target to $1,186, reinforcing the view that the stock still has room to run after its strong rally. MarketScreener
• Positive Sentiment: Recent commentary points to Lumentum’s role in AI data-center connectivity, with strong demand for optical components and capacity reportedly filling into 2028. Lumentum: Nvidia Doesn't Write $2 Billion Checks For Fun
• Positive Sentiment: Investors are also reacting to strong fundamentals: Q3 revenue rose 90% year over year to $808 million, margins improved, and guidance came in above consensus. Lumentum: Nvidia Doesn't Write $2 Billion Checks For Fun
• Neutral Sentiment: Articles across financial media highlighted Lumentum as one of the biggest movers in the optical-networking group, reflecting strong sector momentum rather than a new company announcement. Lumentum Stock Soars as AI Optical Networking Rally Resumes
• Negative Sentiment: No major negative company-specific developments were reported in the provided articles; the main risk is that the stock has already had a very large run and may be vulnerable to valuation-based pullbacks. A Look At Lumentum Holdings (LITE) Valuation After Its Strong Recent Share Price Run

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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