Shares of Lumentum Holdings (NASDAQ: LITE) were down after-hours on Wednesday as the designer and manufacturer of optical and photonic products lowered its Q3 revenue outlook in the range of $380 to $384 million versus its prior expectation between $430 million and $460 million.
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Alan S. Lowe, Lumentum’s President, and CEO commented, “Late in our fiscal 2023 third quarter, a network equipment manufacturer who represented more than 10 percent of our fiscal second quarter revenue informed us that due to their inventory management, they would not take the shipments we had originally projected for the quarter. This shortfall is the primary reason that our fiscal 2023 third quarter revenue will be below the low end of our prior guidance range.”
The company’s Board of Directors also approved an increase in its stock buyback program to an amount of $1.2 billion and extended its duration through May 2025. As of April 1, Lumentum had used $615.5 million to repurchase 7.4 million shares. The company expects to fund the repurchases under the extended share repurchase program out of its existing cash balance.
Lumentum is expected to announce its fiscal Q3 results on May 9.
Analysts rate LITE stock a Moderate Buy based on seven Buys and five Holds.
