Viavi Solutions Up 1.53% To $7.96 After Earnings Miss

Viavi Solutions Inc (VIAV) missed earnings estimates for Q1 2024 this afternoon.

Wall Street earnings per share (EPS) projections for Viavi Solutions were at $0.10. The company missed those estimates with an EPS of $0.09. The earnings per share of $0.09 (which represents a -10% EPS surprise) led to the company's profits falling 61% compared to last year when the firm reported an EPS of $0.23. The decline in Viavi Solutions's annual growth rate represents how the business isn't performing well amid current economic conditions.

Consensus estimates for Viavi Solutions revenue averaged out to $249.7 million, with the business missing on those expectations with reported first-quarter revenue of $247.9 million. The $1.8 million (1%) negative revenue surprise led to negative 20% growth year-over-year as the firm reported revenue of $310.2 million in its year-ago quarter. The lower earnings growth compared to revenue points to Viavi Solutions not being able to improve its profit margin.

The stock is up 1.53% to $7.96 after the report.

Viavi Solutions's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Viavi Solutions a Bullish Sentiment Rank from InvestorsObserver.

Viavi Solutions has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 13, putting Viavi Solutions in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $7.26 on October 27, 2023 and set a 52-week high on November 3, 2022 at $14.48.

Viavi Solutions Inc. is a global provider of network test, monitoring and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military and avionics customers. The company also offers high-performance thin-film optical coatings, providing light management solutions to anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. Its operating segments include Network Enablement, Service Enablement, and Optical Security and Performance Products. Geographically, it derives a majority of revenue from the United States.