What: Shares of Lumentum Holdings Inc (NASDAQ:LITE) jumped as much as 15% on Nov. 11, before settling in at an 11% gain in morning trading. 

So what: Lumentum's first-quarter 2016 financial results came out after market hours on Nov. 10, exceeding most Wall Street analyst estimates for revenue, and coming in well above the company's own midpoint in its guidance, at $212.6 million. Earnings on a GAAP (generally accepted accounting practices) basis came in at a loss of $0.01 per share, but it's important to have a little context on the company's results.

This quarter was Lumentum's first as a stand-alone public company, having separated from Viavi Solutions Inc (NASDAQ:VIAV) about five weeks into the quarter. Because of the impact of a number of costs and events related to the ongoing separation of the now-two stand-alone businesses, management said that going forward, its cost structure would be significantly improved. This, from CFO Aaron Tachibana:

Our stand-alone SG&A costs are significantly lower than those allocated to us by Viavi. For the first quarter, had we been stand-alone for the entirety of the quarter, our operating margin would have been 8.3%, and earnings per share would have been $0.29.

In other words, the company expects to be solidly profitable based on its actual cost structure going forward. 

Now what: Lumentum and Viavi Solutions are still working on consolidating the numbers from the five-week overlap period at the beginning of the quarter, with both companies filing with the SEC for a five-day extension to file their 10-Q quarterly earnings reports, so there's a chance the final numbers for Q1 could be a little bit different -- but what matters most is the go-forward estimates of a stand-alone Lumentum.

For the second quarter, Lumentum management is expecting revenue for the second quarter in the range of $212 million to $222 million, with operating margins in the range of 7.5% to 9.5%, and earnings per share between $0.26 and $0.30. This will be based on moderate growth in optical communications and telecom products. Looking at the long-term picture, management is counting on sales growth in its ROADM-based products, fiber lasers, and a rebound in the datacom upgrade cycle at some point next year.

Jason Hall has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.