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Demand for most of the company’s products is booming due to secular tailwinds. However, supply constraints and uncertainty about mobile phone demand are short-term negatives. Despite declining revenue as a result of these supply constraints, which will continue into Q4, financial performance was stellar, mostly on acquisition synergies. Given the amount of cash the company […]

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With basically all its segments booming, the company is experiencing the best of times. While Q3 will be seasonally weak in lasers and 3D-sensing, margins keep on expanding on product leadership and larger synergies from the Oclaro acquisition. Q3 will experience a negative $15M-20M revenue impact due to the coronavirus outbreak, but the company is […]

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The company is facing secular trends of demand for increased bandwidth most notably from the build-out of 5G, but it is also riding the 3D sensing wave. The company, on the back of a strong R&D effort and an acquisition, has also become a more premium player, which is reflected in rising margins. The favorable […]

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The company has experienced strong growth in 3D sensing and ROADMs, and it is pruning its business of low value-added products (mostly in datacom). It has absorbed the Oclaro acquisition very well and there are additional synergies, producing considerable leverage. There is risk from the trade and technology war still, even if the impact on […]

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Notwithstanding headwinds in two of its four segments, Lumentum still produced decent results with an EPS of $1.15 for the quarter. The company is facing headwinds from datacom and Apple (3D sensing), but these are temporary, and better times are ahead, with 3D sensing spreading to Android. We think the bad news is already priced […]

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We think investors should take advantage of the price weakness here as the company is booming, with the boom set to continue. Telecom has joined in the boom this time with a Chinese recovery and the company can sell twice the ROADMs they sold in the quarter. Financial metrics are improving fast, with gross and […]

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There is surprising strength in telecom, commercial lasers and even datacom demand, although the latter suffers from price erosion. The boom in 3D sensing is about to resume, and there are signs of a Chinese recovery. The company is capacity constrained and is investing to adjust that. Despite that, cash generation is surprisingly strong. All […]

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Finisar, one of the stocks in our SHU portfolio, rallied 28% on a substantial investment from Apple. Shares in Lumentum sold off heavily on this news. We think that sell-off in Lumentum is overdone and bought these shares as well for the SHU portfolio. We’ll explain why. Source: SHU Portfolio: Why We Just Bought Lumentum […]

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Surprisingly soft Q1, especially where one would not expect it. That is datacom revenue disappointed. The 3D sensing bonanza was constrained in Q1, but is arriving in full force in Q2 and looks to continue for quite some time. There are also the first promising signs from the Chinese telecom market. So Q2 will be […]

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Lumentum’s shares performed a dramatic turn-around after the conference call. The quarter was a mixed bag, with booming 100G and VSCELs, but soft lasers and telecom. On balance, the tailwinds are likely to be more enduring than the headwinds, so we’re fairly optimistic for the shares. Source: Lumentum Q4: Take Aways – Lumentum Holdings Inc. […]

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