Network testing solutions company Viavi Solutions (NASDAQ: VIAV) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
Viavi Solutions beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $299.1 million, up 25.6% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.
Is Viavi Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Viavi Solutions’s revenue to grow 34.9% year on year to $365.4 million, improving from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Viavi Solutions has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Viavi Solutions’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Teledyne delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 2.5%, and LSI reported flat revenue, topping estimates by 4.9%. Teledyne traded up 9.8% following the results while LSI was also up 8.6%.
Read our full analysis of Teledyne’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 8.7% on average over the last month. Viavi Solutions is up 11.8% during the same time and is heading into earnings with an average analyst price target of $19.57 (compared to the current share price of $20.23).
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