Core Viewpoint - Lumentum Holdings Inc reported strong second-quarter financial results, exceeding analyst expectations, and provided optimistic third-quarter guidance, indicating robust growth and profitability [1][2][3]. Financial Performance - The company reported quarterly earnings of $1.67 per share, surpassing the analyst consensus estimate of $1.40 per share [1]. - Quarterly sales reached $665.500 million, exceeding the analyst consensus estimate of $646.677 million [1]. Future Guidance - For the third quarter, Lumentum expects adjusted EPS in the range of $2.15 to $2.35, compared to market estimates of $1.55 [2]. - The company anticipates sales between $780.000 million and $830.000 million, significantly above estimates of $695.713 million [2]. Growth Metrics - Lumentum achieved over 65% year-over-year revenue growth and a non-GAAP operating margin expansion exceeding 1,700 basis points [3]. - The revenue for the second quarter hit the high end of the company's guidance range, with profitability and EPS expanding beyond prior expectations [3]. Market Reaction - Following the earnings announcement, Lumentum shares increased by 11.7%, reaching $486.51 in pre-market trading [3].

Core Viewpoint - Lumentum Holdings reported fiscal second quarter earnings and revenue that exceeded Wall Street expectations, leading to a significant increase in its stock price [1] Group 1: Earnings and Revenue Performance - Lumentum's earnings and revenue for the fiscal second quarter surpassed analyst estimates, indicating strong financial performance [1] - The company's guidance for future performance is also above market expectations, suggesting continued growth potential [1] Group 2: Market Position and Growth Drivers - Lumentum continues to supply fiber-optic devices to telecom companies, but its new growth engine is driven by demand from internet giants and cloud computing service providers [1] - The deployment of artificial intelligence technologies by these companies is contributing to Lumentum's growth trajectory [1]

Group 1 - Dow Jones futures rose slightly, along with S&P 500 futures, while Nasdaq futures edged higher [1] - Advanced Micro Devices (AMD) and Lumentum Holdings (LITE) were highlighted as key earnings movers after the market close [1] - The stock market rally saw major indexes retreat, with the Nasdaq breaking below key support levels [1] Group 2 - The Nasdaq experienced its fourth distribution day in five trading sessions, indicating a sell-off in software stocks [1] - Despite a beat-and-raise earnings report, AMD's stock dropped [1] - Lumentum reported strong earnings and revenue, exceeding expectations [1]

Core Viewpoint - Lumentum's financial results and guidance exceeded Wall Street expectations, leading to a significant increase in stock price [1][2]. Financial Performance - Lumentum reported Q2 revenue of $665.5 million, a year-over-year increase of 65.5% and a quarter-over-quarter increase of 24.7% [1]. - The Non-GAAP earnings per share (EPS) were $1.67, significantly higher than the previous year's $0.42 [1]. - The Non-GAAP gross margin was 42.5%, up from 32.3% year-over-year [1]. - Analysts had predicted Q2 revenue of $652.1 million and Non-GAAP EPS of $1.41 [1]. Future Outlook - For the upcoming quarter (Q3), Lumentum forecasts revenue between $780 million and $830 million, with Non-GAAP EPS expected to be between $2.15 and $2.35 [1]. - Analysts had estimated Q3 revenue of $760.4 million and Non-GAAP EPS of $1.60 [1]. Business Opportunities - CEO Michael Hurlston indicated that revenue growth could exceed 85%, driven by opportunities in Optical Circuit Switches (OCS) and Co-Packaged Optics (CPO) [2]. - The company is rapidly expanding capacity for OCS to meet customer demand, with backlogged orders exceeding $400 million [2]. - Lumentum has received a multi-hundred million dollar additional order for CPO, expected to be delivered in the first half of 2027 [2]. Stock Performance - Lumentum's stock rose 2.76% during regular trading to $435.10, reaching a record closing high, and surged 7.68% in after-hours trading to $468.50 [2]. - Year-to-date, Lumentum's stock has increased by 18.04%, and it has skyrocketed by 339.06% since 2025 [2].

Core Insights - Lumentum's stock surged 7.5% to $467.99 in pre-market trading following a strong earnings report, with Q2 revenue for fiscal year 2026 reaching $665.5 million, a 65% year-over-year increase. The AI business is identified as a key growth driver, with backlog orders for optical circuit switches (OCS) exceeding $400 million and new multi-million dollar contracts for packaged optics (CPO) [1] - The company provided a robust Q3 guidance, expecting revenue between $780 million and $830 million, which represents over an 85% year-over-year growth. The CEO highlighted that the explosive growth in bandwidth and energy efficiency demands from AI data centers is leading Lumentum into its strongest growth cycle in history [1] Financial Performance - Q2 revenue: $665.5 million, up 65% year-over-year [1] - Q3 revenue guidance: $780 million to $830 million, over 85% year-over-year growth [1] - OCS backlog: over $400 million [1] - New CPO contracts: several million dollars [1] Stock Performance - Pre-market price: $467.99, up 7.5% [2] - Closing price on February 3: $435.10, up 2.76% [2] - 52-week high: $464.00 [2] - Total market capitalization: $31.066 billion [2]

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Core Viewpoint - Lumentum Holdings Inc. shares experienced a significant increase following the release of strong second-quarter earnings results, indicating positive market sentiment and growth potential for the company [1]. Group 1: Q2 Results - Lumentum Holdings reported earnings per share of $1.67, surpassing analysts' expectations of $1.23 by 36% [2]. - Revenue for the quarter increased by $263.3 million compared to the same period last year [2]. - The company provided guidance for Q3 2026, forecasting earnings between $2.15 and $2.35 per share [2]. Group 2: Trading Metrics and Technical Analysis - The Relative Strength Index (RSI) for Lumentum Holdings is at 66.09, indicating strong momentum [3]. - The company has a market capitalization of $30.85 billion and a 52-week trading range of $45.66 to $464 [3]. - The stock has achieved a remarkable 416.07% gain over the past 12 months, currently trading at approximately 93.1% of its 52-week range, close to its annual high [3]. Group 3: Analyst Ratings and Price Action - Morgan Stanley maintained an Equal-Weight rating on Lumentum Holdings with a price target of $350 [4]. - The stock closed at $435.10, reflecting a 2.76% increase, and is noted for its strong momentum in the 99th percentile [4].

Summary of J.P. Morgan's Optical Group Conference Call Industry Overview - The Optical group has shown resilience with a +10% performance year-to-date, outperforming the coverage average of -1% and the S&P 500 at +1% [1][3] - Concerns regarding AI valuations initially hindered growth, but strong fundamentals have emerged, supported by positive data points from December and January [1] Key Developments - Corning secured a $6 billion multi-year fiber optics agreement with Meta, indicating strong demand in the sector [1] - U.S. hyperscaler earnings and capital expenditure disclosures have been solid, contributing to an increase in market Total Addressable Market (TAM) expectations by over $5 billion for 2026 [1] Company-Specific Insights Coherent Corp (COHR) - Expected to report F2Q26 results ahead of expectations, driven by strong datacom and telecom trends [12] - Anticipated gross margin expansion, potentially reaching 40% or greater earlier than expected, supporting a bullish EPS outlook of ~$9 for CY27 [12][20] - Current share price trades at 28x CY27 earnings, below the cohort average of 30x+, presenting an attractive investment opportunity [12][20] Fabrinet (FN) - Positioned for upside in F2Q26 and F3Q26 results, driven by customer ramps in datacom, telecom, and HPC segments [15][30] - Anticipated revenue growth of +14% year-over-year for F3Q26, with a focus on Nvidia's ramp impacting overall performance [15][30] - Shares currently trade at 29x CY27 earnings, reflecting a modest discount compared to peers [15][30] Lumentum (LITE) - Facing a challenging setup with high buy-side expectations, trading at 36x CY27 earnings [16][42] - Expected revenue growth of +64% year-over-year for F2Q26, but concerns exist regarding the ability to meet lofty expectations [16][42] - The upcoming annual Investor Briefing may not provide significant updates on long-term financial frameworks, adding to uncertainty [16] Valuation and Price Targets - Coherent's price target set at $215, based on a P/E multiple of ~29x for CY27E EPS [21] - Fabrinet's price target set at $530, reflecting a target P/E multiple of ~30x [31] - Lumentum's price target set at $350, based on a ~30x P/E target multiple [43] Risks - Industry-wide pricing pressure could negatively impact earnings forecasts for optical component companies, including Coherent, Fabrinet, and Lumentum [23][35][45] - Vertical integration by optical system suppliers poses competitive risks, potentially leading to pricing pressures [25][48] - Customer concentration risks exist for all three companies, with significant revenue dependence on a few large customers [37][49] Conclusion - The Optical group is experiencing a rebound with strong fundamentals, but high valuations necessitate caution among investors. Selectivity is advised as companies navigate potential risks and pricing pressures in the optical component market [3][12][16]

Summary of Co-Packaged Optics (CPO) for Nvidia Company and Industry - The focus is on Nvidia and its upcoming Co-Packaged Optics (CPO) technology, which is expected to revolutionize optical module integration in high-speed data communication systems [3][4][8]. Core Points and Arguments - **CPO Concept**: CPO integrates optical modules into compact optical engines, which are packaged with compute chips to reduce signal loss and improve performance as SerDes speeds increase [4][5]. - **Product Launch Timeline**: Nvidia plans to release its first CPO product, an Infiniband (IB) switch, in Q4 2024, with mass production of the CPO version starting in Q3 2025 [10][11]. - **Switch Specifications**: The Quantum 3400 X800 IB switch will feature 144 ports, each supporting 800G, and will be designed as a fully liquid-cooled system [14][15]. - **Internal Structure**: The switch will utilize four 28.8T switch chips, providing a total switching capacity of 115.2T, with a chiplet architecture that enhances integration density [18][20]. - **Multi-Plane Topology**: The architecture allows multiple independent switch planes to operate simultaneously, improving efficiency compared to traditional single-chip designs [21][23]. - **Optical Engine Integration**: The optical engines will be integrated with the switch chips, reducing physical space requirements and increasing the overall integration density [29][32]. Additional Important Content - **Component Suppliers**: Key components for the CPO switch will be supplied by various companies, including TSMC for packaging, Corning for MPO fibers and connectors, and Lumentum for laser chips [35][36]. - **Content Value Estimates**: The estimated content value for key components includes: - Switch chips: $12,000 for four 28.8T chips - FAUs: $3,600 for 72 units - Optical engines: $36,000 for 72 units - MPO connectors: $7,200 for 144 ports [36][38]. - **Market Misunderstanding**: There is a common misconception that Nvidia's first CPO product will be a CPO rack system, while it is actually an IB switch [8]. This summary encapsulates the key aspects of Nvidia's CPO technology and its implications for the industry, highlighting the innovative approach to optical integration and the anticipated product launch timeline.

智通财经APP获悉，在公布了好于预期的2026财年第二季度业绩及远超市场预期的第三季度业绩指引后，截至发稿，Lumentum(LITE.US)周二美股盘后涨超 7%。财报显示，这家云计算与网络设备公司在截至去年12月27日的第二季度实现营收6.65亿美元，同比大幅增长65%，高于分析师平均预期的6.52亿美元。 GAAP每股收益为0.89美元，显著高于分析师平均预期的0.49美元;调整后的每股收益为1.67美元，同样高于分析师平均预期的1.41美元。 对于2026财年第三季度，Lumentum预计，调整后每股收益将介于2.15美元至2.35美元之间，显著高于分析师平均预期的1.59美元。该公司预计第三季度营收 将介于7.8亿美元至8.3亿美元之间，预测区间中值为8.05亿美元，同样远高于分析师平均预期的7.07亿美元。 在上个月早些时候，美国银行就重申对Lumentum的"中性"评级，并将对该股目标价从210美元上调至375美元。该行表示，由于市场对光收发器和光组件的 需求旺盛，大幅上调了其目标价，并指出目前这些领域的供应仍然无法满足需求。 | | | | | | | | GAAP Results ($ in ...