SAN JOSE, CA—Julia Suzanne Johnson, a director at Lumentum Holdings Inc . (NASDAQ:LITE), sold 2,058 shares of common stock on November 22, 2024. The shares were sold at a price of $85.82 each, totaling $176,617. Following the transaction, Johnson retains ownership of 23,287 shares in the company. The sale was executed as part of a pre-established Rule 10b5-1 trading plan adopted on August 22, 2024.
In other recent news, Lumentum Holdings Inc. reported a successful first quarter for fiscal year 2025, with revenues reaching $336.9 million and non-GAAP earnings per share (EPS) at $0.18, surpassing initial guidance. This increase in earnings is attributed to a record number of Datacom laser chip orders, driven by growing demands from cloud and AI customers. The company has also projected double-digit sequential revenue growth in Q2 and aims to achieve $500 million in quarterly revenue by the end of 2025.
Further developments include the extension of the company's Amended and Restated 2015 Equity Incentive Plan to June 23, 2026, following stockholder approval. The company's named executive officers received a non-binding advisory approval for their compensation, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending June 28, 2025.
Lumentum has confirmed plans to initiate shipping to a new hyperscale transceiver customer in the first half of 2025. However, the company's Industrial Tech segment witnessed a year-over-year decline of 38%. In terms of future expectations, Lumentum anticipates Q2 fiscal 2025 revenue to be between $380 million and $400 million, with non-GAAP operating margins projected between 5.5% to 7.5%. The company is also expanding its production capacity outside China, particularly in Thailand, to meet increased demand and enhance supply chain resilience.
InvestingPro Insights
The recent insider sale by Julia Suzanne Johnson at Lumentum Holdings Inc. (NASDAQ:LITE) comes at a time when the company's stock is showing strong momentum. According to InvestingPro data, LITE has seen a remarkable 102.23% price total return over the past year, with a 35.13% return in just the last month. This performance aligns with an InvestingPro Tip indicating that the stock has been trading near its 52-week high, currently at 95.36% of that peak.
Despite the company not being profitable over the last twelve months, with an operating income margin of -24.74%, analysts remain optimistic. An InvestingPro Tip reveals that 15 analysts have revised their earnings upwards for the upcoming period, suggesting potential improvement in the company's financial performance. This optimism is further supported by the expectation that Lumentum will be profitable this year.
Investors should note that while the stock's recent performance has been strong, it is trading at a high Price / Book multiple of 6.69. This valuation metric, combined with the company's current challenges in profitability, underscores the importance of thorough analysis before making investment decisions.
For those seeking a more comprehensive understanding of Lumentum's financial health and market position, InvestingPro offers additional insights with 12 more tips available, providing a deeper dive into the company's prospects and potential risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.