<div id="readability-page-1"><div>Lumentum's marginal revenue beat in Q3 might be enough cause for a “sell the news event” despite a strong Q3 bottom-line results and Q4 guidance to match.The recent addition to the S&amp;P 500 reported Q3 results of:<ul><li>Net revenue: $808.4 million (estimate: $805 million, guidance for $780 million to $830 million).</li><li>Adjusted earnings per share: $2.37 (estimate: $2.27, guidance for $2.15 to $2.35)</li></ul>For Q4, management expected net revenues to come in between $960 million and $1.01 billion (estimate: $936.6 million) with adjusted earnings per share of $2.85 to $3.05 (estimate: $2.75).Shares are down more than 7% in after-hours trading.Lumentum received a $2 billion investment and purchase commitment from none other than Nvidia earlier this year, as there’s intense appetite for its lasers and switches that are used to move information around in data centers.In April, Chief Executive Officer Michael Hurlston said that the company is “falling further and further behind the demand” for its optical components and would be sold out through all of 2028 within two quarters.The advanced optics company is a top five performer in the US benchmark index year to date.</div></div>

The AI ​​optical communication chain surged and then retreated during the day, with LITE and COHR experiencing a sharp drop after hours, and APH continuing its downward trend. After the sector's continuous surge, the divergence among bulls has increased significantly. Is this a mid-term consolidation or a sign of a pullback? What's your opinion?

The AI ​​optical communication chain surged and then retreated during the day, with LITE and COHR experiencing a sharp drop after hours, and APH continuing its downward trend. After the sector's continuous surge, the divergence among bulls has increased significantly. Is this a mid-term consolidation or a sign of a pullback? What's your opinion?

Optical modules pulled back — time to add?

LITE

NVDA

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SOXL

FTXL

Lumentum reported Q3 earnings with net revenue of $808.4 million, surpassing estimates, and adjusted EPS of $2.37. For Q4, guidance suggests revenues between $960 million and $1.01 billion, with adjusted EPS of $2.85 to $3.05. Despite strong results, shares fell over 7% in after-hours trading. The company, recently added to the S&P 500, received a $2 billion investment from Nvidia, highlighting demand for its optical components. CEO Michael Hurlston noted the company is struggling to meet demand and expects to be sold out through 2028.

- Lumentum reported Q3 net revenue of $808.4 million, surpassing estimates, with adjusted earnings per share of $2.37, prompting a potential "sell the news" sentiment.  
- For Q4, the company anticipates revenues between $960 million and $1.01 billion, with adjusted earnings projected at $2.85 to $3.05 per share.  
- Despite strong performance, shares fell over 7% in after-hours trading, influenced by a $2 billion investment from Nvidia and rising demand for its optical components.

Lumentum reports better-than-expected Q3 earnings, Q4 guidance above estimates