Lumentum Holdings Inc. ( LITE ) shares are trading higher today after the company reported fourth-quarter results on Wednesday.

Net revenue of $308.3 million beat the consensus of $300.8 million. By segment, Cloud & Networking fell 11.1% Y/Y to $254.7 million and Industrial Tech declined 36.4% Y/Y to $53.6 million in the quarter.

Adjusted gross margin contracted 450bps Y/Y to 32.2% in the quarter. Adjusted operating margin stood at (0.3)% vs. 9.1% in the year-ago quarter.

Adjusted EPS of $0.06 surpassed the street view of $0.03.

At the end of FY24, the company held $887.0 million in cash, cash equivalents, and short-term investments.

Alan Lowe, President and CEO, said, “We exceeded our guidance midpoints for both revenue and EPS in the fourth quarter. We booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market.”

“We are making significant progress executing our strategy to broaden our cloud and AI customer base, which will lead to accelerated growth in calendar year 2025.”

Outlook: Lumentum ( LITE ) expects first-quarter net revenue of $315 million – $335 million (vs. consensus of $312.57 million), adjusted operating margin of 0% – 3%, and adjusted EPS of $0.07 – $0.17 (vs. street view of $0.13).

Also, several analysts raised their respective price targets on the stock.

Price Action: LITE shares are up 14% at $51.90 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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