Benzinga | May 12, 2021 08:29AM EDT

Lumentum's Stock Tumbles After Q3 Revenue Miss, Q4 Guidance Falling Short Of Consensus

* Lumentum Holdings Inc (NASDAQ: LITE) reported third-quarter FY21 net revenue growth of 4.1% year-on-year to $419.5 million, missing the analyst consensus of $433.49 million.

* Optical Communications revenue rose 8% Y/Y to $387.9 million, while Lasers revenue declined 27.4% Y/Y to $31.6 million.

* Adjusted gross margin expanded 440 basis points to 49.9%, and adjusted operating margin expanded 290 basis points to 27.9%.

* Non-GAAP net income rose 12.9% Y/Y to $110.6 million, with an adjusted EPS of $1.40 at par with the analyst consensus.

* The company held $2.1 billion in cash and equivalents.

* "Lumentum deferred $14.8 million of revenue due to delays in 5G deployments in China, which decreased the reported revenue accordingly. Despite the lower revenue, due to the strength of the financial model, Lumentum achieved a 50% non-GAAP gross margin and strong non-GAAP operating margin and EPS, both of which were within its guidance ranges," CEO Alan Lowe said.

* Guidance: Lumentum sees Q4 net revenue of $360 million - $400 million, below the analyst consensus of $408.97 million.

* It expects a Q4 non-GAAP EPS of $0.92 - $1.14, below the analyst consensus of $1.26.

* Lumentum board approved a share buyback program of up to $700 million over the next two years.

* Price action: LITE shares traded lower by 8.12% at $75.47 in the premarket session on the last check Wednesday.