Viavi Q1 revenue beats analyst estimates driven by strong data-center, aerospace demand

Overview

• Test and measurement firm's preliminary fiscal Q1 revenue rose 56.9% yr/yr, beating analyst expectations

• Preliminary non-GAAP EPS for fiscal Q1 rose 213.3% yr/yr

• Company authorized new $500 mln share repurchase program

Outlook

• Viavi expects Q2 net revenue between $505 mln and $515 mln

• Company expects Q2 non-GAAP EPS between $0.50 and $0.52

• Viavi sees continued growth driven by demand in data center and aerospace and defense markets

Result Drivers

• DATA CENTER AND AEROSPACE DEMAND - Co said growth was driven by strong demand and expanding opportunities in data center and aerospace and defense markets, per CEO Oleg Khaykin

• NETWORK AND SERVICE ENABLEMENT - Segment revenue grew 74.1% yr/yr, outpacing other segments

• MARGIN EXPANSION - Co reported higher gross margins, citing improved product mix and operational leverage

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Viavi Solutions Inc. is $65.00, about 116.3% above its November 3 closing price of $30.05

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• Nov 2 - Thailand's Fabrinet Q1 revenue jumps 51%, beats estimates on strong broad-based demand

• Nov 2 - Lumentum Q1 revenue slightly beats estimates on pump laser demand

• Nov 3 - Modine Q2 revenue jumps 35%, beats estimates on data center growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)