Lumentum Holdings gains after upbeat Q1 revenue forecast
LITE•AI demand drives broader sector gains
The earnings beat was driven by strong demand for the company's optical components that are critical for AI infrastructure.
Shares of optical technology firms Viavi Solutions VIAV.O and Fabrinet FN.N climbed 2.4% and 3.3%, respectively. Maker of optical-technology Coherent COHR.N gained 6.2%, and fiber-optic networking products maker Applied Optoelectronics AAOI.O rose 4%.
Twenty-three of 27 brokerages rate the stock "buy" or higher, while four rate it "hold". Their median price target is $1,136.15, according to data compiled by LSEG. Up to the previous day's close, the stock was up 122.6% year to date.
Shares jump after revenue outlook beats estimates
Photonic product maker Lumentum Holdings LITE.O shares gained more than 8% to $887.80 in premarket trading after the company forecast first-quarter revenue above analysts' expectations and beat fourth-quarter estimates.
The company also posted fourth-quarter revenue of $1.01 billion versus analysts' average estimate of $987.9 million, while adjusted EPS was $3.23, beating the estimate of $2.97, according to LSEG-compiled data.
