What happened

Shares of Lumentum (NASDAQ:LITE) have popped today, up by 12% as of 3 p.m. EST, after the company reported fiscal second-quarter earnings results. The optical component company, which also supplies Apple with 3D sensing technology, beat expectations for both top and bottom lines.

So what

Revenue in the fiscal second quarter jumped 23% to $457.8 million, which translated into adjusted net income of $119.4 million, or $1.53 per share. Analysts had been modeling for $452 million in sales and adjusted earnings per share of $1.29. Lumentum finished the quarter with $1.3 billion in cash and short-term investments on the balance sheet.

Visualization of Face ID

Lumentum's 3D sensing technology powers Apple's Face ID. Image source: Apple.

"The themes of the prior quarter -- strong customer demand for our differentiated products, an improving financial model due to increasing levels of new and innovative products and increasing scale and acquisition synergies -- drove new record revenue, gross margin and operating margin in the second quarter," CEO Alan Lowe said in a statement.

Now what

However, Lumentum warned that the coronavirus outbreak would have an impact on results in the fiscal third quarter and the company is providing a wider range for its revenue guidance while also incorporating a $15 million to $20 million reduction. Apple is one of Lumentum's biggest customers, and iPhone shipments (which use Lumentum components for Face ID) are expected to take a hit from the outbreak. Apple's outlook also had a wider range for revenue.

Lumentum is forecasting revenue of $400 million to $425 million, with adjusted earnings per share of $1 to $1.17.