Viavi Solutions (NASDAQ:VIAV) Issues Earnings Results

Viavi Solutions (NASDAQ:VIAV) released its quarterly earnings data on Wednesday. The communications equipment provider reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.30 by $0.04, FiscalAI reports. The firm had revenue of $443.10 million for the quarter, compared to analysts’ expectations of $432.62 million. Viavi Solutions had a negative net margin of 4.03% and a positive return on equity of 16.80%. The company’s revenue for the quarter was up 52.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.13 earnings per share. Viavi Solutions updated its Q1 2027 guidance to 0.400-0.420 EPS.

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

• Record fourth-quarter performance: Revenue reached $443.1 million, up 52.5% year over year and above guidance, while operating margin expanded to 24% and EPS rose to $0.34. Fiscal 2026 revenue grew 40% to $1.518 billion.
• Strong data-center and aerospace demand is driving growth. NSE revenue increased 69.2% year over year, with data-center-related business now representing roughly 50% of NSE revenue and growing more than twofold excluding Spirent; management expects robust demand for several more quarters.
• Fiscal Q1 2027 guidance calls for further sequential growth. Revenue is expected at $450 million-$460 million, with operating margin of approximately 27.1% and EPS of $0.40-$0.42, aided by an approximately $11 million tariff refund and continued strength in NSE and 3D sensing.
• Management said Spirent integration is complete and ahead of schedule, with restructuring savings being realized and revenue expected to grow about 10% sequentially from June to September. CPO and optical circuit switching opportunities are progressing, with CPO revenue beginning to ramp in coming quarters.
• Wireless demand remains anemic, though stable, and the company issued 12.78 million shares in a follow-on offering, increasing the diluted share count to 261 million in Q4 and approximately 268 million expected in Q1.

Viavi Solutions Trading Up 3.8%

Shares of NASDAQ VIAV traded up $1.50 during midday trading on Thursday, hitting $40.40. 5,472,119 shares of the company traded hands, compared to its average volume of 6,342,980. Viavi Solutions has a 12-month low of $10.02 and a 12-month high of $60.43. The firm has a market cap of $9.45 billion, a P/E ratio of -167.39 and a beta of 1.21. The stock has a 50-day moving average price of $44.54 and a 200 day moving average price of $38.81. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.39 and a current ratio of 1.61.

Trending Headlines about Viavi Solutions

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

• Positive Sentiment: Fiscal Q4 results exceeded expectations. Viavi reported adjusted earnings of $0.34 per share, above the $0.30 consensus estimate, while revenue rose 52.5% year over year to $443.1 million, surpassing expectations of approximately $432.6 million. Growth was supported by data-center, aerospace and defense demand and contributions from Spirent products. VIAV Q4 Earnings Top Estimates on Data Center, A&D Strength
• Positive Sentiment: Management delivered an upbeat outlook. First-quarter fiscal 2027 guidance calls for EPS of $0.40 to $0.42 and revenue of $450 million to $460 million, well above consensus estimates of $0.27 EPS and $433.2 million revenue. The company is also targeting a $500 million quarterly revenue run rate in calendar 2027. Viavi anticipates Q1 FY2027 EPS of $0.40-$0.42
• Positive Sentiment: Analyst sentiment remains bullish. Stifel Nicolaus raised its price target to $65 and maintained a Buy rating, while Rosenblatt reaffirmed its Buy rating with a $70 target. These targets imply substantial potential upside and suggest analysts view the earnings momentum and guidance as sustainable.
• Neutral Sentiment: Some analysts trimmed targets despite retaining Buy ratings. Needham lowered its target from $68 to $60, and B. Riley reduced its target from $63 to $60. The cuts may reflect valuation or risk management rather than a change in the broader bullish view. Needham lowers VIAV price target
• Negative Sentiment: Valuation and insider selling remain risks. Commentary has raised valuation concerns following the rally, while reported insider activity shows 26 sales and no purchases over the past six months, including substantial selling by executives. These factors could limit further gains or increase volatility even as operating results improve. Viavi Solutions following earnings beat and guidance

Wall Street Analyst Weigh In

Several research firms recently issued reports on VIAV. UBS Group cut their target price on Viavi Solutions from $60.00 to $44.00 and set a “neutral” rating on the stock in a research note on Thursday. B. Riley Financial lowered their price target on Viavi Solutions from $63.00 to $60.00 and set a “buy” rating for the company in a research report on Thursday. Needham & Company LLC dropped their price objective on Viavi Solutions from $68.00 to $60.00 and set a “buy” rating for the company in a report on Thursday. Stifel Nicolaus lifted their price objective on Viavi Solutions from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Wall Street Zen raised Viavi Solutions from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Viavi Solutions currently has an average rating of “Moderate Buy” and a consensus target price of $49.88.

Insider Buying and Selling at Viavi Solutions

In other Viavi Solutions news, CEO Oleg Khaykin sold 136,547 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $51.82, for a total transaction of $7,075,865.54. Following the transaction, the chief executive officer owned 1,188,798 shares in the company, valued at approximately $61,603,512.36. This represents a 10.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Viavi Solutions

A number of institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its stake in shares of Viavi Solutions by 11.5% in the 1st quarter. Royal Bank of Canada now owns 183,320 shares of the communications equipment provider’s stock worth $2,051,000 after acquiring an additional 18,910 shares in the last quarter. AQR Capital Management LLC increased its stake in shares of Viavi Solutions by 110.5% during the first quarter. AQR Capital Management LLC now owns 33,663 shares of the communications equipment provider’s stock valued at $377,000 after purchasing an additional 17,673 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Viavi Solutions by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 131,061 shares of the communications equipment provider’s stock valued at $1,467,000 after purchasing an additional 5,775 shares during the last quarter. Millennium Management LLC boosted its position in shares of Viavi Solutions by 205.4% in the 1st quarter. Millennium Management LLC now owns 476,767 shares of the communications equipment provider’s stock worth $5,335,000 after purchasing an additional 320,662 shares in the last quarter. Finally, United Services Automobile Association bought a new stake in shares of Viavi Solutions in the 1st quarter worth approximately $165,000. Institutional investors own 95.54% of the company’s stock.

Viavi Solutions Company Profile

Viavi Solutions Inc is a provider of network test, monitoring and assurance solutions for communications service providers, cable operators, enterprises and government agencies. The company offers an extensive portfolio of fiber optic and copper cable test and measurement instruments, wireless network testing equipment and network performance monitoring software. Its products are designed to support the deployment, maintenance and optimization of high-speed broadband, 5G wireless, data center and enterprise networks.

Viavi’s product offerings are organized into two primary segments: Network & Service Enablement and Optical Security & Performance.