Viavi Solutions (NASDAQ:VIAV) Issues Quarterly Earnings Results

Viavi Solutions (NASDAQ:VIAV) posted its earnings results on Wednesday. The communications equipment provider reported $0.47 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.06, FiscalAI reports. The business had revenue of $469.30 million for the quarter, compared to the consensus estimate of $455.06 million. Viavi Solutions had a negative net margin of 2.00% and a positive return on equity of 19.60%.

Here are the key takeaways from Viavi Solutions’ conference call:

• Viavi beat fiscal Q1 guidance, reporting revenue of $469.3 million and EPS of $0.47. The company forecast Q2 revenue of $505 million–$515 million and EPS of $0.50–$0.52, with sequential growth expected to continue through the fiscal year.
• Data-center demand and aerospace and defense strength drove NSE growth, while management said data-center demand remains robust. Viavi has begun shipments for semiconductor assembly and test, a new opportunity management believes could eventually exceed $100 million.
• Operating margin reached 29%, and Q2 margin is forecast at 29.3%. Management cited operating leverage from higher volumes, but Q1 results included an approximately $11 million tariff refund, which added about 110 basis points to operating margin.
• Management expects OSP revenue to decline sequentially in Q2 due to seasonal weakness, and described wireless spending as subdued. It also pointed to potential support from a service-provider equipment refresh cycle, while wireless recovery tied to AI-RAN and 6G remains longer term.

Viavi Solutions Stock Down 2.2%

Shares of NASDAQ VIAV traded down $0.67 during trading hours on Wednesday, hitting $29.38. 15,816,311 shares of the stock were exchanged, compared to its average volume of 6,020,273. Viavi Solutions has a 12 month low of $15.51 and a 12 month high of $60.43. The firm has a fifty day moving average price of $37.29 and a 200-day moving average price of $38.50. The company has a quick ratio of 1.62, a current ratio of 1.85 and a debt-to-equity ratio of 0.27. The company has a market cap of $7.23 billion, a PE ratio of -195.85 and a beta of 1.31.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Rosenblatt Securities reissued a “buy” rating and set a $70.00 price objective on shares of Viavi Solutions in a report on Wednesday, September 23rd. Weiss Ratings cut Viavi Solutions from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, September 8th. Wall Street Zen downgraded Viavi Solutions from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 29th. Needham & Company LLC cut their price target on Viavi Solutions from $68.00 to $60.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Finally, Zacks Research lowered Viavi Solutions from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Viavi Solutions has an average rating of “Moderate Buy” and an average target price of $55.43.

Insider Activity

In other Viavi Solutions news, Director Laura Black sold 71,000 shares of Viavi Solutions stock in a transaction on Monday, August 17th. The shares were sold at an average price of $46.12, for a total value of $3,274,520.00. Following the transaction, the director directly owned 71,497 shares of the company’s stock, valued at approximately $3,297,441.64. The trade was a 49.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Luke Scrivanich sold 35,866 shares of the company’s stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $36.24, for a total value of $1,299,783.84. Following the transaction, the senior vice president directly owned 39,598 shares in the company, valued at approximately $1,435,031.52. The trade was a 47.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 199,694 shares of company stock valued at $7,976,233 in the last ninety days. 1.20% of the stock is currently owned by insiders.

About Viavi Solutions

Viavi Solutions Inc (NASDAQ: VIAV) develops equipment, software and services used to test, monitor and secure communications networks. Its solutions support network operators, equipment manufacturers, government agencies and other organizations involved in the design, deployment and operation of wired and wireless networks.

The company’s products include fiber-optic and broadband test instruments, network performance and service-assurance software, optical spectrum analyzers, monitoring systems and tools for testing 5G and other advanced communications technologies.