Viavi Solutions (VIAV) experienced a significant after-hours plunge of 6.20% on Thursday, following the release of its third-quarter fiscal 2025 earnings report. This sharp decline comes as a surprise, especially considering the stock had been up 22% in premarket trading earlier in the day.

The company reported Q3 earnings per share (EPS) of $0.09, with revenue reaching $284.8 million, slightly above the estimated $282.1 million. Viavi's gross margin for the quarter stood at 56.4%, while its operating margin was 3%, with an adjusted operating margin of 16.7%. Despite the revenue beat, investors seemed to react negatively to the overall results.

Adding to the downward pressure, Viavi provided guidance for its fourth quarter, expecting net revenue to be between $278 million and $290 million, with non-GAAP EPS projected between $0.10 and $0.13. This outlook may have fallen short of market expectations, potentially contributing to the after-hours sell-off. Investors will likely be closely watching Viavi's performance in the coming quarter to see if the company can meet or exceed these projections.