Viavi Solutions' stock surged 23.13% in pre-market trading, following the release of the company's fiscal third-quarter financial results that significantly exceeded analyst expectations.

The communication equipment provider reported adjusted earnings per share of $0.27, beating the consensus estimate of $0.23 by 17.39% and representing an 80% increase from the same period last year. Quarterly revenue reached $406.8 million, surpassing the $393.8 million estimate and marking a 42.8% year-over-year growth. The company also provided strong guidance for the fourth quarter, forecasting adjusted EPS between $0.29 and $0.31 and net revenue in the range of $427 million to $437 million, both above analyst projections.

The rally was further fueled by a major target price upgrade from investment bank B. Riley, which raised its price target for Viavi Solutions from $26 to $53 while maintaining a Buy rating. Company CEO Oleg Khaykin attributed the strong performance to robust demand in data center and aerospace and defense end markets, which are seen as key growth drivers for the business.