Viavi Solutions (NASDAQ:VIAV) Announces Earnings Results

Key Points

• Viavi Solutions exceeded quarterly expectations: Earnings were $0.34 per share versus the $0.30 consensus, while revenue reached $443.1 million, up 52.5% year over year.
• Growth remains strongest in data-center and aerospace markets. NSE revenue rose 69.2%, and management expects continued demand alongside further sequential growth in Q1 fiscal 2027, guiding for $0.40–$0.42 EPS and $450–$460 million in revenue.
• Wireless demand remains weak and share dilution is a concern: The company issued 12.78 million shares in a follow-on offering, while its stock fell 3.5% following the earnings release.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) released its quarterly earnings data on Wednesday. The communications equipment provider reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.04, FiscalAI reports. The business had revenue of $443.10 million during the quarter, compared to analysts' expectations of $432.62 million. Viavi Solutions had a positive return on equity of 16.80% and a negative net margin of 4.03%. Viavi Solutions updated its Q1 2027 guidance to 0.400-0.420 EPS.

Here are the key takeaways from Viavi Solutions' conference call:

• Record fourth-quarter performance: Revenue reached $443.1 million, up 52.5% year over year and above guidance, while operating margin expanded to 24% and EPS rose to $0.34. Fiscal 2026 revenue grew 40% to $1.518 billion.
• Strong data-center and aerospace demand is driving growth. NSE revenue increased 69.2% year over year, with data-center-related business now representing roughly 50% of NSE revenue and growing more than twofold excluding Spirent; management expects robust demand for several more quarters.
• Fiscal Q1 2027 guidance calls for further sequential growth. Revenue is expected at $450 million-$460 million, with operating margin of approximately 27.1% and EPS of $0.40-$0.42, aided by an approximately $11 million tariff refund and continued strength in NSE and 3D sensing.
• Management said Spirent integration is complete and ahead of schedule, with restructuring savings being realized and revenue expected to grow about 10% sequentially from June to September. CPO and optical circuit switching opportunities are progressing, with CPO revenue beginning to ramp in coming quarters.
• Wireless demand remains anemic, though stable, and the company issued 12.78 million shares in a follow-on offering, increasing the diluted share count to 261 million in Q4 and approximately 268 million expected in Q1.

Viavi Solutions Stock Down 3.5%

Shares of VIAV traded down $1.42 on Wednesday, reaching $38.90. The stock had a trading volume of 7,372,695 shares, compared to its average volume of 6,350,589. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.39 and a current ratio of 1.61. Viavi Solutions has a 12-month low of $9.92 and a 12-month high of $60.43. The firm has a market capitalization of $9.10 billion, a price-to-earnings ratio of -162.08 and a beta of 1.21. The company has a 50-day simple moving average of $44.82 and a 200-day simple moving average of $38.66.

Wall Street Analyst Weigh In

VIAV has been the subject of a number of recent analyst reports. Wall Street Zen upgraded Viavi Solutions from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. B. Riley Financial lifted their price target on shares of Viavi Solutions from $26.00 to $53.00 and gave the company a "buy" rating in a report on Friday, April 24th. Susquehanna boosted their price objective on shares of Viavi Solutions from $65.00 to $66.00 and gave the company a "positive" rating in a research report on Wednesday, July 1st. Weiss Ratings lowered shares of Viavi Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, July 16th. Finally, UBS Group lifted their target price on shares of Viavi Solutions from $25.00 to $60.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $42.88.

Insiders Place Their Bets

In related news, CEO Oleg Khaykin sold 136,547 shares of the company's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $51.82, for a total value of $7,075,865.54. Following the sale, the chief executive officer directly owned 1,188,798 shares of the company's stock, valued at $61,603,512.36. This represents a 10.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Viavi Solutions

A number of hedge funds have recently modified their holdings of the business. State of Wyoming bought a new position in shares of Viavi Solutions in the 4th quarter worth about $34,000. Johnson Financial Group Inc. purchased a new stake in Viavi Solutions in the third quarter worth about $44,000. Kestra Advisory Services LLC bought a new position in shares of Viavi Solutions during the fourth quarter valued at approximately $90,000. Empowered Funds LLC purchased a new position in shares of Viavi Solutions during the fourth quarter valued at approximately $126,000. Finally, Abel Hall LLC bought a new stake in shares of Viavi Solutions in the 4th quarter worth approximately $185,000. Institutional investors own 95.54% of the company's stock.

Viavi Solutions Company Profile

Viavi Solutions Inc is a provider of network test, monitoring and assurance solutions for communications service providers, cable operators, enterprises and government agencies. The company offers an extensive portfolio of fiber optic and copper cable test and measurement instruments, wireless network testing equipment and network performance monitoring software. Its products are designed to support the deployment, maintenance and optimization of high-speed broadband, 5G wireless, data center and enterprise networks.

Viavi's product offerings are organized into two primary segments: Network & Service Enablement and Optical Security & Performance.

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