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Viavi (VIAV) Reiterates Q1 View, Initiates New Stock Buyback
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Viavi Solutions Inc. (VIAV - Free Report) has reiterated its guidance for the first quarter of fiscal 2023 on the back of strong operating performance and improving capital structure. The company has also launched a share repurchase program that will replace its existing stock buyback program, which expires on Sep 30, 2022.
For the first quarter of fiscal 2023 (ending Oct 1, 2022), Viavi continues to expect revenues in the range of $317-$331 million. Non-GAAP earnings are estimated in the band of 22-24 cents per share. The company has authorized a $300 million worth of share repurchase program effective Oct 1, 2022 that will replace the $200 million stock repurchase program authorized in September 2019.
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle, fueled by the transition of OEMs and service providers to superfast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.
The company engages in targeted restructuring activities to consolidate its operations and better align businesses with evolving market conditions and investment strategies. Viavi pursues a holistic growth model with strategic acquisitions and focused organic improvement plans. Of late, the OSP (Optical Security and Performance Products) segment has been benefiting from strong demand for 3D sensing and anti-counterfeiting products. The company expects to leverage major secular growth trends in 5G wireless, fiber and 3D sensing to achieve higher revenues and profitability with greater flexibility in the capital structure.
Demand for sophisticated anti-counterfeiting features, which consumers can easily validate without using special tools but are difficult to create or simulate using conventional printing technology, has led to the exponential growth of Viavi’s OSP segment. The custom optics products of the company offer an array of advanced technologies and precision optics to meet customers' specific requirements. Its 3D sensing optical filters and Engineered Diffusers are deployed in smartphones for facial recognition biometric authentication. In addition, optical filters and sensors deployed in autonomous vehicles and IoT devices offer lucrative opportunities for the company.
The stock has lost 12.7% over the past year compared with the industry’s decline of 7.3%.
Image Source: Zacks Investment Research
We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock.
TESSCO Technologies Incorporated , carrying a Zacks Rank #2, delivered an earnings surprise of 61.9%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 31% since September 2021.
TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.
Spirent Communications plc (SPMYY - Free Report) carries a Zacks Rank #2. Earnings estimates for the current year for the stock have moved up 10.8% since September 2021, while that for the next year is up 11.8%.
Founded in 1936 and headquartered in Crawley, the United Kingdom, Spirent offers a comprehensive, end-to-end solution that validates forwarding performance, latency and functional capabilities in an integrated approach that reduces the cost of ownership. It is a leading provider of Ethernet validation solutions in the market.
Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 79.3%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 12.9% since February 2022.
Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices.
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Viavi (VIAV) Reiterates Q1 View, Initiates New Stock Buyback
Viavi Solutions Inc. (VIAV - Free Report) has reiterated its guidance for the first quarter of fiscal 2023 on the back of strong operating performance and improving capital structure. The company has also launched a share repurchase program that will replace its existing stock buyback program, which expires on Sep 30, 2022.
For the first quarter of fiscal 2023 (ending Oct 1, 2022), Viavi continues to expect revenues in the range of $317-$331 million. Non-GAAP earnings are estimated in the band of 22-24 cents per share. The company has authorized a $300 million worth of share repurchase program effective Oct 1, 2022 that will replace the $200 million stock repurchase program authorized in September 2019.
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle, fueled by the transition of OEMs and service providers to superfast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.
The company engages in targeted restructuring activities to consolidate its operations and better align businesses with evolving market conditions and investment strategies. Viavi pursues a holistic growth model with strategic acquisitions and focused organic improvement plans. Of late, the OSP (Optical Security and Performance Products) segment has been benefiting from strong demand for 3D sensing and anti-counterfeiting products. The company expects to leverage major secular growth trends in 5G wireless, fiber and 3D sensing to achieve higher revenues and profitability with greater flexibility in the capital structure.
Demand for sophisticated anti-counterfeiting features, which consumers can easily validate without using special tools but are difficult to create or simulate using conventional printing technology, has led to the exponential growth of Viavi’s OSP segment. The custom optics products of the company offer an array of advanced technologies and precision optics to meet customers' specific requirements. Its 3D sensing optical filters and Engineered Diffusers are deployed in smartphones for facial recognition biometric authentication. In addition, optical filters and sensors deployed in autonomous vehicles and IoT devices offer lucrative opportunities for the company.
The stock has lost 12.7% over the past year compared with the industry’s decline of 7.3%.
Image Source: Zacks Investment Research
We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TESSCO Technologies Incorporated , carrying a Zacks Rank #2, delivered an earnings surprise of 61.9%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 31% since September 2021.
TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.
Spirent Communications plc (SPMYY - Free Report) carries a Zacks Rank #2. Earnings estimates for the current year for the stock have moved up 10.8% since September 2021, while that for the next year is up 11.8%.
Founded in 1936 and headquartered in Crawley, the United Kingdom, Spirent offers a comprehensive, end-to-end solution that validates forwarding performance, latency and functional capabilities in an integrated approach that reduces the cost of ownership. It is a leading provider of Ethernet validation solutions in the market.
Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 79.3%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 12.9% since February 2022.
Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices.