
Lumentum Holdings (LITE) Stock Forecast & Price Target
Lumentum Holdings (LITE) Analyst Ratings
Bulls say
Lumentum Holdings Inc. demonstrated a significant improvement in its operating margin, which rose to 7.9%, reflecting a 490 basis point quarter-over-quarter increase and a 430 basis point year-over-year increase, attributed to enhanced profitability in its Networking and Cloud segments alongside reduced SG&A expenses. The company’s Cloud and Networking revenue surged to $339 million, marking a 20% quarter-over-quarter and 18% year-over-year growth, driven by robust demand across its product lines and strong performance in telecom demand from cloud operators. Overall, expectations are set for continued revenue growth and improved financial metrics as key segments, notably the OpComms, gain momentum in the market.
Bears say
Lumentum Holdings has reported a significant year-over-year decline in revenue for its Industrial Tech segment, decreasing by 21%, despite a quarter-over-quarter growth of 15%, indicating underlying weakness in sustainable demand. The company's gross margin has decreased to 32.3%, falling short of consensus estimates, primarily due to issues with product yield and an unfavorable product mix, which are anticipated to provide ongoing financial challenges. Additionally, weaker-than-expected demand for 3D sensing applications, combined with persistent supply chain disruptions, has negatively impacted Lumentum's ability to capitalize on stronger market demand, contributing to a negative outlook for the company's future financial performance.
This aggregate rating is based on analysts' research of Lumentum Holdings and is not a guaranteed prediction by Public.com or investment advice.
Lumentum Holdings (LITE) Analyst Forecast & Price Prediction
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