Viavi Solutions (NASDAQ:VIAV) Issues Earnings Results

Viavi Solutions (NASDAQ:VIAV) issued its quarterly earnings data on Wednesday. The communications equipment provider reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.06, FiscalAI reports. The firm had revenue of $469.30 million during the quarter, compared to analyst estimates of $455.06 million. Viavi Solutions had a positive return on equity of 19.60% and a negative net margin of 2.00%. The company’s revenue for the quarter was up 56.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.15 EPS.

Here are the key takeaways from Viavi Solutions’ conference call:

• Viavi beat fiscal Q1 guidance, reporting revenue of $469.3 million and EPS of $0.47. The company forecast Q2 revenue of $505 million–$515 million and EPS of $0.50–$0.52, with sequential growth expected to continue through the fiscal year.
• Data-center demand and aerospace and defense strength drove NSE growth, while management said data-center demand remains robust. Viavi has begun shipments for semiconductor assembly and test, a new opportunity management believes could eventually exceed $100 million.
• Operating margin reached 29%, and Q2 margin is forecast at 29.3%. Management cited operating leverage from higher volumes, but Q1 results included an approximately $11 million tariff refund, which added about 110 basis points to operating margin.
• Management expects OSP revenue to decline sequentially in Q2 due to seasonal weakness, and described wireless spending as subdued. It also pointed to potential support from a service-provider equipment refresh cycle, while wireless recovery tied to AI-RAN and 6G remains longer term.

Viavi Solutions Trading Down 2.2%

Shares of VIAV stock opened at $29.38 on Thursday. Viavi Solutions has a 52-week low of $15.51 and a 52-week high of $60.43. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.62 and a current ratio of 1.85. The company has a 50-day simple moving average of $37.12 and a two-hundred day simple moving average of $38.55. The company has a market capitalization of $7.23 billion, a price-to-earnings ratio of -195.85 and a beta of 1.31.

Key Headlines Impacting Viavi Solutions

Here are the key news stories impacting Viavi Solutions this week:

• Positive Sentiment: For fiscal Q1 2027, Viavi reported adjusted earnings of $0.47 per share, above the roughly $0.41 analyst consensus, and revenue of $469.3 million, ahead of estimates. Earnings rose from $0.15 a year earlier, while revenue increased 56.9% year over year. VIAVI Announces First Quarter Fiscal 2027 Results
• Positive Sentiment: Management provided optimistic revenue guidance for the next quarter, adding support to the view that recent business momentum could continue. Viavi reports bullish Q3 and provides next-quarter guidance
• Positive Sentiment: Viavi announced a $500 million share buyback. The authorization may return capital to shareholders and signals management’s willingness to repurchase shares, though the timing and amount of actual purchases are not specified. Viavi announces a $500 million equity buyback

Analyst Ratings Changes

A number of research analysts have recently weighed in on VIAV shares. Stifel Nicolaus set a $65.00 target price on Viavi Solutions in a report on Wednesday, September 23rd. Zacks Research cut Viavi Solutions from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Needham & Company LLC decreased their price target on Viavi Solutions from $68.00 to $60.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Wall Street Zen downgraded Viavi Solutions from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 29th. Finally, Weiss Ratings lowered Viavi Solutions from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, September 8th. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $60.83.

Insider Activity

In other news, Director Laura A. Black sold 71,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $46.12, for a total value of $3,274,520.00. Following the transaction, the director owned 71,497 shares in the company, valued at $3,297,441.64. The trade was a 49.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Paul McNab sold 11,032 shares of the company’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $38.97, for a total value of $429,917.04. Following the completion of the transaction, the executive vice president directly owned 25,639 shares of the company’s stock, valued at approximately $999,151.83. This represents a 30.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 199,694 shares of company stock worth $7,976,233. Corporate insiders own 1.20% of the company’s stock.

Viavi Solutions Company Profile

Viavi Solutions Inc (NASDAQ: VIAV) develops equipment, software and services used to test, monitor and secure communications networks. Its solutions support network operators, equipment manufacturers, government agencies and other organizations involved in the design, deployment and operation of wired and wireless networks.

The company’s products include fiber-optic and broadband test instruments, network performance and service-assurance software, optical spectrum analyzers, monitoring systems and tools for testing 5G and other advanced communications technologies.