Lumentum Delivers Record Quarter, Guides Above Forecasts as Debt Spike Hits Shares

A March convertible preferred boosted the current portion of long‑term debt to $3.24 billion, shifting attention from the strong results to near‑term liabilities.

Overview

Lumentum reported fiscal Q3 revenue of $808.4 million, up 90% year over year, with adjusted earnings per share (EPS) of $2.37 that topped estimates.
Shares fell about 5.6% in after‑hours trading as investors focused less on the beat and more on the company’s balance sheet.
The current portion of long‑term debt jumped to $3.24 billion from $10.6 million, a shift tied to cash raised through a March convertible preferred stock offering.
Adjusted gross margin rose to 47.9% and adjusted operating margin to 32.2%, which CEO Michael Hurlston credited to tighter pricing and a product mix led by laser chips and pump lasers.
For fiscal Q4, management forecast EPS of $2.85 to $3.05 and revenue of $960 million to $1.01 billion, and the company has now topped EPS estimates for four straight quarters.