Lumentum Holdings, a renowned manufacturer of commercial lasers, experienced a decline in stock value following the release of underwhelming guidance. The company, identified by the ticker symbol LITE, projected a net revenue range of $300 million to $325 million for the fiscal first quarter. Additionally, their adjusted earnings per share were estimated to fall between 20 cents and 35 cents. These figures fell short of Wall Street analysts' expectations of $368 million in revenue and earnings of 58 cents per share.
Lumentum's CEO, Alan Lowe, expressed his belief that the ongoing customer inventory correction cycle would persist throughout the rest of the calendar year. Consequently, the company predicts that its shipments will not be able to meet the demand of the end-market. Despite these challenges, Lowe maintains confidence in the company's product roadmaps and their ability to surpass their previously announced synergy plans.
During the fiscal fourth quarter, Lumentum achieved a net revenue of $370.8 million and an adjusted earnings figure of 59 cents per share. However, the disappointing guidance had an immediate impact on stock prices, which dropped by 4.9% in premarket trading, settling at $44.50.