Business Corpus: Apple Device Supplier Lumentum Pops, Outlook Above EstimatesLumentum Holdings popped after the supplier of 3D components to Apple early Wednesday reported fiscal third-quarter earnings and revenue that topped views and provided a June quarter outlook above consensus estimates. The post Apple Device Supplier Lumentum Pops, Outlook Above Estimates appeared first on Investor's Business Daily.

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Lumentum Holdings (LITE) popped Wednesday after the supplier of 3D components to Apple (AAPL) topped fiscal third-quarter views and provided better-than-expected June quarter outlook.

Lumentum reported adjusted earnings of 78 cents a share, up 59% from a year ago, and topping estimates of 71 cents a share. The company said revenue rose 17% to $299 million vs. estimates of $292.2 million.

For the June quarter, the company forecast revenue in a range of $275 million to $300 million vs. estimates of $280 million. The maker of optical communications components forecast profit of 65 cents vs. estimates of 62 cents.

While shares surged 11.1% to 58.50 on the stock market today, Lumentum stock met resistance in cracking the 50-day moving average threshold. In recent action, shares were closer to the 200-day.

Fiber-Optics

Lumentum's core business is in fiber-optic components built into telecom networks and cloud computing data centers. Lumentum has pushed into a new market, 3D sensor devices for smartphones, with Apple a top customer.

"Though seasonally down, we made good progress on new 3D sensing customer programs and are well positioned for new customer product introductions during fiscal 2019," Lumentum Chief Executive Alan Lowe said in a press release.

Lumentum's results came a day after consumer electronics giant Apple beat Wall Street's targets for the March quarter. Late Tuesday, Apple guided analysts higher for sales in the June quarter and announced a big boost to its dividends and share buybacks.

Lumentum shares have been pressured by disappointing sales of the iPhone X as well as weak demand for optical components from China. The stock pulled back from an all-time high of 72 set on March 12. With Wednesday's gain, Lumentum is up 20% in 2018.

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The post Apple Device Supplier Lumentum Pops, Outlook Above Estimates appeared first on Investor's Business Daily.