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Lumentum shares are down more than 4% so far in the session, at levels last recorded in 2019.
The analysts told investors that the company’s outlook being reset further is one too many. “Expectations were already low after the pre-announcement in early April, but the outlook into the rest of the year was reset further with headwinds across the board,” wrote the analysts.
“Within the Telecom business, CIEN inventory digestion is persisting, and the expectation is for similar work-downs at other customers,” they added.
In addition, Barclays feel LITE’s Commercial Lasers segment will remain weak well into the second half, and 3D Sensing is now expected to only step up moderately in H2.
“Even when assuming some better gross margins into CY24, we struggle to get to greater than $3.50 of EPS in CY24 and move to Equal Weight,” they concluded.
