Lumentum (LITE) Moves 4.2% Higher: Will This Strength Last?
Source: Zacks ·
Lumentum (LITE) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
From the source
Lumentum LITE shares soared 4.2% in the last trading session to close at $930.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.6% gain over the past four weeks. The optimism surrounding the stock can be attributed to strong demand for Lumentum's optical products, driven by rising AI data center deployments, record 800G shipments and the start of 1.6T transceiver shipments. Further, strong pump laser demand and the expected ramp-up in OCS revenue are supporting the company's growth outlook. This optical networking products maker is expected to post quarterly earnings of $4.22 per share in its upcoming report, which represents a year-over-year change of +283.6%. Revenues are expected to be $1.25 billion, up 134.2% from the year-ago quarter. While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between…