Lumentum’s stock surges after adjusted profit and revenue beats, and upbeat earnings outlook

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Shares of Lumentum Holdings Inc. charged up 5.0% in premarket trading Tuesday, after the optical networking and laser company reported fiscal fourth-quarter earnings that beat expectations and provided an upbeat first-quarter outlook. The net loss for the quarter to June 27 narrowed to $4.6 million, or 6 cents a share, from a loss of $25.8 million, or 34 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $1.18 from 91 cents, topping the FactSet consensus of 83 cents. Revenue fell 9.0% to $368.1 million, but beat the FactSet consensus of $349.7 million. Optical communications revenue declined 7.4% to $330.3 million but beat the FactSet consensus of $311.7 million, and lasers revenue dropped 20.9% to $37.8 million but was above the FactSet consensus of $35.3 million. For the first quarter, the company expects adjusted EPS of $1.40 to $1.55, compared with the FactSet consensus of $1.33, and revenue of $430 million to $455 million, surrounding expectations of $436 million. The stock has rallied 11.0% year to date through Monday, while the S&P 500 has gained 4.0%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.