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Sergey Savastiouk's Avatar
published in Blogs
May 20, 2019

Lumentum (LITE, $44.97) lowers guidance, shares extend decline

Lumentum Holdings shares extended their decline Monday, on news of the telecom equipment maker lowering its outlook on current quarter revenue.

The company announced that it halted shipments to telecom/electronics giant Huawei, and currently expects revenues for the three months ending in June to range between $375 million and $390 million – below its prior predicted range of $405 million and $425 million.

Lumentum has also slashed its earnings per share guidance to a range of 65 cents to 77 cents a share, compared to the previous estimated range of 85 cents to $1.00.

Indicating that it aims to comply with the U.S. export regulations vis-a-vis license requirements, the company said, "Lumentum has discontinued all shipments to Huawei effective as of the date the licensing requirements went into effect and cannot predict when it will be able to resume shipments".

Related Ticker: LITE

LITE in downward trend: price may drop because broke its higher Bollinger Band on March 24, 2025

LITE broke above its upper Bollinger Band on March 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 41 similar instances where the stock broke above the upper band. In of the 41 cases the stock fell afterwards. This puts the odds of success at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

Following a 3-day decline, the stock is projected to fall further. Considering past instances where LITE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for LITE entered a downward trend on March 19, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LITE's RSI Oscillator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where LITE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Momentum Indicator moved above the 0 level on April 02, 2025. You may want to consider a long position or call options on LITE as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for LITE just turned positive on March 17, 2025. Looking at past instances where LITE's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LITE advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LITE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.541) is normal, around the industry mean (8.106). P/E Ratio (111.111) is within average values for comparable stocks, (93.078). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.815). LITE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (2.267) is also within normal values, averaging (17.611).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LITE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.

Notable companies

The most notable companies in this group are Cisco Systems (NASDAQ:CSCO), Hewlett Packard Enterprise Company (NYSE:HPE), Nokia Corp (NYSE:NOK), Ericsson (NASDAQ:ERIC), Juniper Networks (NYSE:JNPR), Ciena Corp (NYSE:CIEN), Lumentum Holdings (NASDAQ:LITE), CommScope Holding Company (NASDAQ:COMM).

Industry description

The Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.

Market Cap

The average market capitalization across the Telecommunications Equipment Industry is 5.3B. The market cap for tickers in the group ranges from 1.59K to 202.5B. CSCO holds the highest valuation in this group at 202.5B. The lowest valued company is ABILF at 1.59K.

High and low price notable news

The average weekly price growth across all stocks in the Telecommunications Equipment Industry was -8%. For the same Industry, the average monthly price growth was -7%, and the average quarterly price growth was -2%. BKTI experienced the highest price growth at 51%, while CMBM experienced the biggest fall at -57%.

Volume

The average weekly volume growth across all stocks in the Telecommunications Equipment Industry was 1%. For the same stocks of the Industry, the average monthly volume growth was -42% and the average quarterly volume growth was 77%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 49
P/E Growth Rating: 56
Price Growth Rating: 57
SMR Rating: 81
Profit Risk Rating: 81
Seasonality Score: -11 (-100 ... +100)
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General Information

a provider of optical and photonic products

Industry TelecommunicationsEquipment

Profile
Fundamentals
Details
Industry
Telecommunications Equipment
Address
1001 Ridder Park Drive
Phone
+1 408 546-5483
Employees
7500
Web
https://www.lumentum.com