Skip to main content
Updated:
Original:

Lumentum Stock Jumps As Apple Supplier Beats On Earnings, Notes Chip Shortage

"While demand continues to grow into the first quarter, shortages of critical semiconductor components are negatively impacting our first quarter revenue outlook by more than $30 million," said CEO Alan Lowe

Lumentum Holdings  (LITE) - Get Lumentum Holdings, Inc. Report posted stronger-than-expected fourth quarter earnings Wednesday, as well as a robust outlook, even as the Apple  (AAPL) - Get Apple Inc. (AAPL) Report supplier said chip shortages would trim near-term sales. 

Lumentum, which supplies laser components for Apple iPhone's facial recognition system, said earnings for the three months ending on July 3, the group's fiscal fourth quarter, fell 2.5% from last year to $1.15 per share but topped the Street consensus forecast of $1.05 per share. Group revenues, however, rose 6.5% on a reported basis to $392.1 million, a figure that also beat analyst's forecasts of $388.3 million.

Looking into the start of its 2022 financial year, Lumentum said revenues in the region of $430 million to $445 million and earnings of between $1.47 and $1.61 per share.

"While demand continues to grow into the first quarter, shortages of critical semiconductor components are negatively impacting our first quarter revenue outlook by more than $30 million," said CEO Alan Lowe. "We believe, however, the continuing shift in our demand mix towards differentiated products that enable next generation customer solutions is a leading indicator for growth over the coming years."

TheStreet Recommends

Lumentum shares were marked 3% higher in early trading immediately following the earnings release to change hands at $82.60 each, a move that would trim the stock's year-to-date decline to around 13%.

Apple CEO Tim Cook cautioned investors last month that chip shortages meant it's "difficult to get the entire set of parts within the lead times that we try" even as iPhone and other product demand remains "beyond our own expectations."

Apple said at the time it sees "very strong double digit year over year revenue growth during the September quarter", but noted it would be slower than that 36% gain recorded over the three months ending in June, which lifted the tech giant's top line to a Street-blasting $81.4 billion.