Lumentum (NASDAQ:LITE) stock is falling on Thursday after the optical and photonic company announced preliminary results for its fiscal third quarter of 2023.
The big news here is the company expecting revenue for the quarter to range from $380 million to $384 million. That’s a drop from Lumentum’s prior revenue outlook of between $430 million and $460 million. That’s not good for LITE stock, considering Wall Street expects revenue of $439.63 million for the period.
Investors wondering what’s behind that revenue drop have an answer. Lumentum notes that a “network equipment manufacturer” representing 10% of its projected revenue for the quarter won’t accept shipments originally projected. The manufacturer said this was due to inventory management.
Alan Lowe, President and CEO of Lumentum, said the following about the news:
“This shortfall is the primary reason that our fiscal 2023 third quarter revenue will be below the low end of our prior guidance range. Looking ahead, we expect a similar level of shipments to this customer in our fiscal Q4, as we saw in Q3.”
What the Future Holds for LITE Stock
Investors in LITE stock may be disappointed when the company releases its earnings report on May 9. In addition to that, the warning about Q4 could also spell more trouble for shares if results fail to reach estimates.
LITE stock is down 14.3% during pre-market trading on Thursday.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
