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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $469.30 mln | $455.06 mln (7 Analysts) |
Q1 EPS | $0.29 | ||
Q1 Gross Margin | 61.20% | ||
Q1 Adjusted Operating Margin | 29.00% | ||
Q1 Operating Margin | 17.40% |
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
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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.)