Shares of Lumentum Holdings Inc (LITE) dropped 4.1% in premarket trade Tuesday, after the maker of optical and photonic products used in smartphones reported fiscal second-quarter earnings that missed expectations while revenue beat lowered guidance as gross margin fell. Net income for the quarter to Dec. 29 fell to $5.4 million, or 8 cents a share, from $196.9 million, or $3.05 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.15, below the FactSet consensus of $1.17. Revenue fell to $373.7 million from $404.6 million, but was above the FactSet consensus of $357.4 million. Gross margin fell to 33.4% from 42.3%. In November, Lumentum had foreshadowed ( ) Apple Inc.'s (AAPL) iPhone troubles but slashing its revenue outlook to $335 million to $355 million from $405 million to $430 million, citing a request from "one of its largest" customers to "materially" reduce shipment on previously placed orders. For its third quarter, Lumentum expects adjusted EPS of 76 cents to 94 cents, compared with the FactSet consensus of 93 cents, and revenue of $420 million to $440 million, versus expectations of $420.9 million. The stock has shed 7.0% over the past three months through Monday, while the S&P 500 has slipped 0.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 05, 2019 07:52 ET (12:52 GMT)
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