Shares of Lumentum (NASDAQ:LITE) have gotten crushed today, down by 17% as of noon EDT, after the company reported fiscal third-quarter earnings. Lumentum's top-line results and guidance disappointed investors and the company took a hit due to delays in deployments.
Revenue in the fiscal third quarter was $419.5 million, which missed the consensus estimate of $434 million. That resulted in adjusted earnings per share of $1.40, which was on target with what Wall Street was looking for. Lumentum is a technology company that provides optical and photonic components.
"The strong year on year margin improvements in our third quarter results highlight a product portfolio increasingly rich in new and differentiated products that are aligned with multi-year favorable market trends and the impact of continuous improvement in our operations," CEO Alan Lowe said in a statement. "Out of an abundance of caution, we deferred $14.8 million of revenue due to delays in 5G deployments in China, which decreased our reported revenue accordingly."
Guidance for the fiscal fourth quarter calls for revenue in the range of $360 million to $400 million, which is below the consensus estimate of $414.4 million. That should result in adjusted earnings per share of $0.92 to $1.14, also light compared to the $1.26 per share in adjusted profits that analysts are modeling for.
Lumentum's board of directors has authorized a $700 million share repurchase program based on the company's confidence in its long-term prospects, combined with the fact that Lumentum has added $600 million in cash to its balance sheet over the past year.