VIAVI SOLUTIONS Misses Earnings and Revenue Estimates in Q3
May 3, 2023
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VIAVI SOLUTIONS ($NASDAQ:VIAV) is a software-centric network test, monitoring, and assurance solutions provider that caters to service providers, enterprises, government, and military organizations. Specifically, their Non-GAAP EPS of $0.08 was lower than expected by $0.01 and their revenue of $247.8M was below the forecast by $3.9M. The underperformance was largely due to weak demand from their service provider customers. VIAVI Solutions saw softness in demand for their products in all the regions they serve—the Americas, Asia-Pacific, and Europe, Middle East, and Africa.
Additionally, their sales force productivity was also adversely impacted due to the pandemic-related shift to remote working. While the company’s overall performance was slightly weaker than expected, they did see strength in their newer product offerings such as the XL2 Network Analyzer and OneExpert Cable Tester. These products drove higher year-over-year revenues in their Network Enablement product line, which grew 8% compared to the same period last year. Despite the short-term hiccup, VIAVI Solutions remains optimistic about its long-term outlook. The company has identified opportunities to strengthen its core product lines through new innovation and partnerships with customers. They also plan to focus on strategic cost reductions to offset the impact of declining demand.
Price History
The company saw a decrease in both revenue and profit for the quarter compared to the same period last year. As a result, VIAVI SOLUTIONS stock opened at $8.9 and closed at $8.9, down by 1.4% from previous closing price of 9.0. This was compared to the same quarter last year, when VIAVI SOLUTIONS had reported an increase in both revenue and profit. Analysts had estimated that the company would be able to post higher earnings and revenue figures than it did in the third quarter.
Investors responded negatively to the news, driving down the stock price. It is yet to be seen how the company will fare in the coming quarters, but as of now it looks like VIAVI SOLUTIONS has not been able to meet expectations for the current quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Viavi Solutions. More…
| Total Revenues | Net Income | Net Margin |
| 1.25k | 76.7 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Viavi Solutions. More…
| Operations | Investing | Financing |
| 175.3 | -134.4 | -260.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Viavi Solutions. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.83k | 1.14k | 3.06 |
Key Ratios Snapshot
Some of the financial key ratios for Viavi Solutions are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.2% | 16.9% | 12.5% |
| FCF Margin | ROE | ROA |
| 8.4% | 14.6% | 5.3% |
Analysis
GoodWhale has conducted an extensive analysis of the fundamentals of VIAVI SOLUTIONS. This makes VIAVI SOLUTIONS an attractive prospect for investors who would be interested in a company with a solid financial structure. Not only is VIAVI SOLUTIONS financially secure, but it also has a high health score of 8/10 with regard to its cashflows and debt. This suggests that VIAVI SOLUTIONS is strong enough to sustain its operations in the event of a crisis. Our analysis also shows that VIAVI SOLUTIONS is strong in profitability, medium in assets, and weak in dividends and growth. In conclusion, VIAVI SOLUTIONS is a good choice for investors looking for a company with a stable financial structure and good long-term prospects. More…
Peers
The company offers a portfolio of solutions that enable its customers to optimize and assure the performance of their networks and applications. Its competitors include Raisecom Technology Co Ltd, TPT Global Tech Inc, Calnex Solutions PLC.
– Raisecom Technology Co Ltd ($SHSE:603803)
Raisecom Technology Co Ltd is a Chinese company that manufactures and sells telecommunications equipment. The company has a market capitalization of $3.12 billion as of 2022 and a return on equity of -0.43%. Raisecom Technology Co Ltd’s products include routers, switches, and network interface cards. The company also provides software and services for voice and data communications.
– TPT Global Tech Inc ($OTCPK:TPTW)
TPT Global Tech Inc is a publicly traded company with a market capitalization of $3.14 million as of 2022. The company has a return on equity of 6.63%. TPT Global Tech Inc is a provider of telecommunications and technology solutions. The company offers a range of services, including voice, data, and video communications; broadband and wireless Internet; and managed network and security solutions.
– Calnex Solutions PLC ($LSE:CLX)
Calnex Solutions is a leading provider of network test and measurement solutions. The company’s products are used by network operators and equipment manufacturers worldwide to ensure the quality and performance of their networks. Calnex’s products are used in all phases of the network lifecycle, from design and development to deployment and operations. The company’s products are backed by a team of expert engineers who are dedicated to providing the highest quality products and support.
Summary
Revenue for the same period totaled $247.8M, also missing estimates by $3.9M. Investors will be looking for the company to continue its upward trajectory in the upcoming quarters. VIAVI Solutions is a provider of network test, monitoring, and assurance solutions for communications service providers, enterprises, and governments around the world.
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