Viavi Solutions (NASDAQ:VIAV) Posts Earnings Results, Beats Estimates By $0.06 EPS

Viavi Solutions (NASDAQ:VIAV) posted its quarterly earnings data on Wednesday. The communications equipment provider reported $0.47 EPS for the quarter, beating the consensus estimate of $0.41 by $0.06, FiscalAI reports. The firm had revenue of $469.30 million during the quarter, compared to analyst estimates of $455.06 million. Viavi Solutions had a net margin of 3.97% and a return on equity of 27.07%. The company’s revenue for the quarter was up 56.9% on a year-over-year basis. During the same quarter last year, the business posted $0.15 EPS.

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 10.5%

VIAV stock opened at $26.30 on Friday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.62 and a current ratio of 1.85. The company has a market capitalization of $6.47 billion, a price-to-earnings ratio of 109.59 and a beta of 1.31. Viavi Solutions has a fifty-two week low of $15.51 and a fifty-two week high of $60.43. The stock has a fifty day moving average of $36.87 and a 200-day moving average of $38.59.

Viavi Solutions News Roundup

Here are the key news stories impacting Viavi Solutions this week:

• Positive Sentiment: Fiscal Q1 adjusted earnings of $0.47 per share beat estimates of about $0.41, while revenue of $469.3 million exceeded forecasts and rose 56.9% year over year. Reports also highlighted a 213.3% increase in earnings. VIAV Q1 Earnings Beat Estimates on Data Center, A&D Strength
• Positive Sentiment: Management cited data-center and defense demand, expanding semiconductor testing opportunities, and expected sequential revenue gains through fiscal 2027. The company also announced a $500 million share buyback, which could support shareholder returns. VIAV Q1 Earnings Call Maps New Data Center Test Markets Viavi announces a $500 million equity buyback
• Neutral Sentiment: Shares fell despite the earnings beat and positive outlook, so the reported operating results alone do not explain the market reaction. Viavi Solutions dropped: What is behind the move?
• Negative Sentiment: Needham lowered its price target from $60 to $53, although it maintained a Buy rating. The reduced target may have weighed on sentiment. Needham analyst recommendations

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on VIAV. B. Riley Financial lowered their target price on Viavi Solutions from $63.00 to $60.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Needham & Company LLC decreased their price objective on shares of Viavi Solutions from $60.00 to $53.00 and set a “buy” rating for the company in a report on Thursday. Stifel Nicolaus set a $65.00 price objective on shares of Viavi Solutions in a report on Wednesday, September 23rd. UBS Group dropped their target price on shares of Viavi Solutions from $60.00 to $44.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. Finally, Weiss Ratings downgraded shares of Viavi Solutions from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, September 8th. Five investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Viavi Solutions currently has an average rating of “Moderate Buy” and an average target price of $59.67.

Insider Transactions at Viavi Solutions

In related news, EVP Ilan Daskal sold 56,290 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $36.29, for a total value of $2,042,764.10. Following the sale, the executive vice president directly owned 10,132 shares in the company, valued at approximately $367,690.28. The trade was a 84.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Laura Black sold 71,000 shares of Viavi Solutions stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $46.12, for a total transaction of $3,274,520.00. Following the completion of the transaction, the director owned 71,497 shares of the company’s stock, valued at $3,297,441.64. The trade was a 49.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 199,694 shares of company stock worth $7,976,233. Insiders own 1.20% of the company’s stock.

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.