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) Beats Q3 Earnings Estimates on Solid Revenues
Read MoreHide Full Article
Viavi Solutions Inc. (VIAV - Free Report) reported impressive third-quarter fiscal 2021 (ended Apr 3, 2021) results, with both the bottom and top lines surpassing their respective Zacks Consensus Estimate. The San Jose, CA-based company generated higher revenues on the back of solid demand for wireless, fiber and anti-counterfeiting products.
Bottom Line
On a GAAP basis, net income in the quarter was $11.8 million or 5 cents per share against net loss of $32.8 million or loss of 14 cents per share in the year-ago quarter. The year-over-year improvement was primarily attributable to higher income from operations.
Non-GAAP net income came in at $42.3 million or 18 cents per share compared with $32 million or 14 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
Viavi Solutions Inc. Price, Consensus and EPS Surprise
Recovering from the pandemic adversities, quarterly total net revenues increased 18.4% year over year to $303.4 million and exceeded the company’s guidance of $280-$300 million. The upsurge was primarily driven by continued strength in wireless and fiber, along with robust demand for anti-counterfeiting products. Also, the top line surpassed the consensus estimate of $291 million.
Segment wise, revenues from NE (Network Enablement) were up 16.5% from the year-ago quarter’s figure to $190.9 million due to increased demand for fiber, cable and wireless products. SE (Service Enablement) revenues fell 12.1% to $20.3 million, mainly due to softness in demand for assurance and data center products. Overall, revenues in the NSE (Network and Service Enablement) segment were above the guidance of $189-$205 million.
NSE’s gross margin was 64.2%, down 10 basis points (bps) year over year. Operating margin of 9.9% increased 250 bps, primarily as a result of higher revenues.
OSP (Optical Security and Performance Products) revenues increased 33.2% year over year to $92.2 million and came within the projected range of $91-$95 million. The improvement was mainly driven by robust demand for anti-counterfeiting and 3D sensing products.
OSP’s gross margin of 60.6% expanded 800 bps year over year owing to higher volume, favorable product mix and high factory utilization. Operating margin of 43.9% improved 890 bps on higher gross margin.
Region wise, Viavi generated 33.6% of total net revenues from the Americas, 33.7% from the Asia-Pacific and 32.7% from EMEA (Europe, Middle East and Africa).
Other Details
Overall, non-GAAP gross profit was $191.4 million with a margin of 63.1% compared with $156.7 million with a margin of 61.2% in the year-ago quarter. Non-GAAP operating income was $61.4 million compared with $38 million in the prior-year quarter with respective margins of 20.2% and 14.8%.
Cash Flow & Liquidity
During the fiscal third quarter, Viavi generated $48.1 million of cash from operations compared with $39.1 million in the year-earlier period. As of Apr 3, 2021, the company had $672.2 million in cash and cash equivalents with $618.1 million of long-term debt.
Q4 Fiscal 2021 Guidance
For the fourth quarter of fiscal 2021 (ending Jul 3, 2021), Viavi expects revenues in the range of $290-$310 million. These include NSE revenue expectations in the range of $219 million to $235 million and OSP revenues in the range of $71 million to $75 million. Non-GAAP earnings are estimated in the band of 18-20 cents per share.
Altice USA pulled off a trailing four-quarter earnings surprise of 61.5%, on average.
Cogent pulled off a trailing four-quarter earnings surprise of 29%, on average.
Corning pulled off a trailing four-quarter earnings surprise of 39%, on average.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Viavi (VIAV) Beats Q3 Earnings Estimates on Solid Revenues
Viavi Solutions Inc. (VIAV - Free Report) reported impressive third-quarter fiscal 2021 (ended Apr 3, 2021) results, with both the bottom and top lines surpassing their respective Zacks Consensus Estimate. The San Jose, CA-based company generated higher revenues on the back of solid demand for wireless, fiber and anti-counterfeiting products.
Bottom Line
On a GAAP basis, net income in the quarter was $11.8 million or 5 cents per share against net loss of $32.8 million or loss of 14 cents per share in the year-ago quarter. The year-over-year improvement was primarily attributable to higher income from operations.
Non-GAAP net income came in at $42.3 million or 18 cents per share compared with $32 million or 14 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
Viavi Solutions Inc. Price, Consensus and EPS Surprise
Viavi Solutions Inc. price-consensus-eps-surprise-chart | Viavi Solutions Inc. Quote
Revenues
Recovering from the pandemic adversities, quarterly total net revenues increased 18.4% year over year to $303.4 million and exceeded the company’s guidance of $280-$300 million. The upsurge was primarily driven by continued strength in wireless and fiber, along with robust demand for anti-counterfeiting products. Also, the top line surpassed the consensus estimate of $291 million.
Segment wise, revenues from NE (Network Enablement) were up 16.5% from the year-ago quarter’s figure to $190.9 million due to increased demand for fiber, cable and wireless products. SE (Service Enablement) revenues fell 12.1% to $20.3 million, mainly due to softness in demand for assurance and data center products. Overall, revenues in the NSE (Network and Service Enablement) segment were above the guidance of $189-$205 million.
NSE’s gross margin was 64.2%, down 10 basis points (bps) year over year. Operating margin of 9.9% increased 250 bps, primarily as a result of higher revenues.
OSP (Optical Security and Performance Products) revenues increased 33.2% year over year to $92.2 million and came within the projected range of $91-$95 million. The improvement was mainly driven by robust demand for anti-counterfeiting and 3D sensing products.
OSP’s gross margin of 60.6% expanded 800 bps year over year owing to higher volume, favorable product mix and high factory utilization. Operating margin of 43.9% improved 890 bps on higher gross margin.
Region wise, Viavi generated 33.6% of total net revenues from the Americas, 33.7% from the Asia-Pacific and 32.7% from EMEA (Europe, Middle East and Africa).
Other Details
Overall, non-GAAP gross profit was $191.4 million with a margin of 63.1% compared with $156.7 million with a margin of 61.2% in the year-ago quarter. Non-GAAP operating income was $61.4 million compared with $38 million in the prior-year quarter with respective margins of 20.2% and 14.8%.
Cash Flow & Liquidity
During the fiscal third quarter, Viavi generated $48.1 million of cash from operations compared with $39.1 million in the year-earlier period. As of Apr 3, 2021, the company had $672.2 million in cash and cash equivalents with $618.1 million of long-term debt.
Q4 Fiscal 2021 Guidance
For the fourth quarter of fiscal 2021 (ending Jul 3, 2021), Viavi expects revenues in the range of $290-$310 million. These include NSE revenue expectations in the range of $219 million to $235 million and OSP revenues in the range of $71 million to $75 million. Non-GAAP earnings are estimated in the band of 18-20 cents per share.
Zacks Rank & Stocks to Consider
Viavi currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader industry are Altice USA, Inc. (ATUS - Free Report) , Cogent Communications Holdings, Inc. (CCOI - Free Report) and Corning Incorporated (GLW - Free Report) . While Altice USA and Cogent sport a Zacks Rank #1 (Strong Buy), Corning carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altice USA pulled off a trailing four-quarter earnings surprise of 61.5%, on average.
Cogent pulled off a trailing four-quarter earnings surprise of 29%, on average.
Corning pulled off a trailing four-quarter earnings surprise of 39%, on average.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>