On August 12, Lumentum rose 6.87% in pre-market trading, trading at $874.2/share, with turnover of $3.43 million. The stock surged after the company reported fiscal Q4 results and issued fiscal Q1 guidance that both substantially exceeded Wall Street estimates.

Lumentum posted Q4 net revenue of $1.01 billion, up 109% year-over-year and above the consensus estimate of $987.9 million. Adjusted EPS came in at $3.23, beating the $2.97 estimate by 8.75%, representing a 267% increase from $0.88 a year earlier. Non-GAAP gross margin rose to 50.4%, surpassing the expected 48.8%. On a GAAP basis, the company reported a net loss of $7.2 billion due to a one-time non-cash debt extinguishment loss of $7.8 billion.

More critically, fiscal Q1 guidance significantly topped expectations: revenue is projected at $1.23-1.28 billion (midpoint 8% above consensus of $1.16 billion), with adjusted EPS of $4.05-$4.35 (midpoint 16% above the $3.61 estimate). CEO Michael Hurlston noted pump lasers are sold out with shipments expected to quadruple in coming quarters, while 1.6T modules are in mass production. Citi reiterated a Buy rating with a $1,100 target price.

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