Network testing solutions company Viavi Solutions (NASDAQ:VIAV) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Viavi Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $406.8 million, up 42.8% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Viavi Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Viavi Solutions’s revenue to grow 48.9% year on year, improving from the 15.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Viavi Solutions rarely misses Wall Street’s revenue estimates.
Looking at Viavi Solutions’s peers in the inspection instruments segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Teledyne delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 5.3%, and Itron reported a revenue decline of 7.2%, falling short of estimates by 0.5%. Teledyne’s stock price was unchanged after the resultswhile Itron was up 20.7%.
Read our full analysis of Teledyne’s results here and Itron’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the inspection instruments stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Viavi Solutions is down 9.6% during the same time and is heading into earnings with an average analyst price target of $64.57 (compared to the current share price of $38.35).
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