Shares of Lumentum (LITE) - Get Lumentum Holdings, Inc. Report surged Tuesday after the manufacturer of optical networking components and key Apple (AAPL) - Get Apple Inc. Report supplier posted beats on both quarterly earnings and revenue.
Lumentum's stock price jumped 8.17% to $83.53 a share as the tech company, which produces components used in the facial recognition sensors in Apple iPhones, produced an earnings surprise of 17.69%, according to Zacks Investment Research.
Lumentum reported fiscal second-quarter earnings of $1.53 a share, well above both the $1.30 estimate of analysts surveyed by Zacks and the $1.15 a share the company generated during the same quarter a year earlier.
Lumentum also topped revenue estimates, reporting sales of $457.8 million for the quarter, or 1% higher than what analysts polled by Zacks had forecast, while also beating the $373.7 million the tech company reported same quarter last year.
With fears of a major economic disruption from coronavirus receding on Wall Street, even a warning by Lumentum that revenue in the current quarter could be negatively impacted by the virus failed to shake investors.
Lumentum, in its quarterly report, said it expects to take a $15 million to $20 million revenue hit in its fiscal third quarter, currently underway. The tech company now expects revenue for the current quarter to fall between $400 million to $425 million.
Lumentum noted the revenue range it is providing for the third quarter is "wider than normal" as a result of the "anticipated impact of the 2019 novel coronavirus outbreak."
Analysts surveyed by FactSet have been anticipating revenue of $409 million for the quarter.