We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Viavi (VIAV) Q1 Earnings Beat Estimates, Revenues Down Y/Y
Read MoreHide Full Article
Viavi Solutions Inc. (VIAV - Free Report) reported decent first-quarter fiscal 2021 results (ended Oct 3, 2020), wherein the top and the bottom lines beat the respective Zacks Consensus Estimate.
Net Income
On a GAAP basis, net income in the quarter was $14.3 million or 6 cents per share compared with $6.8 million or 3 cents per share in the year-ago quarter.
Non-GAAP net income came in at $48.3 million or 21 cents per share compared with $42.9 million or 18 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents, with the positive surprise being 23.5%.
Viavi Solutions Inc. Price, Consensus and EPS Surprise
Quarterly total net revenues declined 5% year over year to $284.7 million. The top line, however, surpassed the consensus estimate of $283 million.
Segment-wise, revenues from NE (Network Enablement) fell 18.5% year over year to $162.1 million, primarily due to the pandemic-related declines in Field Instruments. SE (Service Enablement) revenues grew 2.4% to $21.4 million, driven by an increase in Assurance revenues.
NSE’s (Network and Service Enablement) gross margin was 64.2%, up 20 basis points (bps) year over year. Its operating margin of 7.2% decreased 290 bps due to lower revenues. This was above the midpoint of the company’s guidance of 5.5-7.5%.
OSP (Optical Security and Performance Products) revenues grew 26.5% year over year to $101.2 million. The improvement was driven by an increase in 3D Sensing, Anti-Counterfeiting and Aerospace & Defense products.
OSP’s gross margin of 60.3% expanded 620 bps year over year owing to higher volume and favorable manufacturing cost absorption. Operating margin of 46.7% improved 870 bps on higher gross margin and good cost control.
Region wise, Viavi generated 33.5% of total net revenues from the Americas, 38% from Asia-Pacific and 28.5% from EMEA.
Other Details
Overall, non-GAAP gross profit was $178.8 million with a margin of 62.8% compared with $183.9 million with a margin of 61.3% in the year-ago quarter. Non-GAAP operating income was $60.6 million compared with $52.7 million in the prior-year quarter with respective margins of 21.3% and 17.6%.
Cash Flow & Liquidity
In the first quarter of fiscal 2021, Viavi generated $63.9 million of cash from operations, up 104.2% year over year. As of Oct 3, 2020, the company had $590.8 million in cash and cash equivalents with $606.6 million of long-term debt compared with the respective tallies of $539 million and $600.9 million at the end of the previous quarter.
Q2 Fiscal 2021 Guidance
For the second quarter of fiscal 2021 (ending Jan 2, 2021), Viavi expects revenues in the range of $280-$300 million. Non-GAAP earnings are estimated in the band of 18-20 cents per share.
Turtle Beach delivered a trailing four-quarter positive earnings surprise of 41%, on average.
Corning delivered a trailing four-quarter positive earnings surprise of 40.7%, on average.
U.S. Cellular delivered a trailing four-quarter positive earnings surprise of 168.1%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Viavi (VIAV) Q1 Earnings Beat Estimates, Revenues Down Y/Y
Viavi Solutions Inc. (VIAV - Free Report) reported decent first-quarter fiscal 2021 results (ended Oct 3, 2020), wherein the top and the bottom lines beat the respective Zacks Consensus Estimate.
Net Income
On a GAAP basis, net income in the quarter was $14.3 million or 6 cents per share compared with $6.8 million or 3 cents per share in the year-ago quarter.
Non-GAAP net income came in at $48.3 million or 21 cents per share compared with $42.9 million or 18 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents, with the positive surprise being 23.5%.
Viavi Solutions Inc. Price, Consensus and EPS Surprise
Viavi Solutions Inc. price-consensus-eps-surprise-chart | Viavi Solutions Inc. Quote
Revenues
Quarterly total net revenues declined 5% year over year to $284.7 million. The top line, however, surpassed the consensus estimate of $283 million.
Segment-wise, revenues from NE (Network Enablement) fell 18.5% year over year to $162.1 million, primarily due to the pandemic-related declines in Field Instruments. SE (Service Enablement) revenues grew 2.4% to $21.4 million, driven by an increase in Assurance revenues.
NSE’s (Network and Service Enablement) gross margin was 64.2%, up 20 basis points (bps) year over year. Its operating margin of 7.2% decreased 290 bps due to lower revenues. This was above the midpoint of the company’s guidance of 5.5-7.5%.
OSP (Optical Security and Performance Products) revenues grew 26.5% year over year to $101.2 million. The improvement was driven by an increase in 3D Sensing, Anti-Counterfeiting and Aerospace & Defense products.
OSP’s gross margin of 60.3% expanded 620 bps year over year owing to higher volume and favorable manufacturing cost absorption. Operating margin of 46.7% improved 870 bps on higher gross margin and good cost control.
Region wise, Viavi generated 33.5% of total net revenues from the Americas, 38% from Asia-Pacific and 28.5% from EMEA.
Other Details
Overall, non-GAAP gross profit was $178.8 million with a margin of 62.8% compared with $183.9 million with a margin of 61.3% in the year-ago quarter. Non-GAAP operating income was $60.6 million compared with $52.7 million in the prior-year quarter with respective margins of 21.3% and 17.6%.
Cash Flow & Liquidity
In the first quarter of fiscal 2021, Viavi generated $63.9 million of cash from operations, up 104.2% year over year. As of Oct 3, 2020, the company had $590.8 million in cash and cash equivalents with $606.6 million of long-term debt compared with the respective tallies of $539 million and $600.9 million at the end of the previous quarter.
Q2 Fiscal 2021 Guidance
For the second quarter of fiscal 2021 (ending Jan 2, 2021), Viavi expects revenues in the range of $280-$300 million. Non-GAAP earnings are estimated in the band of 18-20 cents per share.
Zacks Rank & Other Stocks to Consider
Viavi currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader industry include Turtle Beach Corporation (HEAR - Free Report) , Corning Incorporated (GLW - Free Report) and United States Cellular Corporation (USM - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Turtle Beach delivered a trailing four-quarter positive earnings surprise of 41%, on average.
Corning delivered a trailing four-quarter positive earnings surprise of 40.7%, on average.
U.S. Cellular delivered a trailing four-quarter positive earnings surprise of 168.1%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>