The chart below shows how VIAV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VIAV sees a -0.84% change in stock price 10 days leading up to the earnings, and a +0.56% change 10 days following the report. On the earnings day itself, the stock moves by +0.45%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q2 Net Revenue Exceeds Guidance: Net revenue for Q2 was $270.8 million, exceeding guidance of $255 million to $265 million, representing a 13.7% sequential increase and a 6.4% year-over-year growth.
Operating Margin Performance: Operating margin for Q2 was 14.9%, significantly above the guidance range of 11.4% to 13.4%, and increased by 490 basis points sequentially and 170 basis points year-over-year.
Earnings Per Share Performance: Earnings per share (EPS) reached $0.13, surpassing the guidance range of $0.09 to $0.11, and increased by $0.07 sequentially and $0.02 year-over-year.
Q2 Revenue Exceeds Guidance: NSE revenue for Q2 was $199.9 million, exceeding guidance of $184 million to $192 million, driven by strong order pace from service providers and a year-over-year increase of 11.3%.
Cash and Investments Increase: Total cash and short-term investments at the end of Q2 increased to $512.8 million from $497.9 million in Q1, with cash flow from operating activities rising to $44.7 million compared to $20.4 million in the same period last year.
Negative
Revenue Decline Analysis: SE revenue declined 13.3% year over year, primarily due to conservative spending from enterprise customers.
Quarterly Revenue Performance: OSP revenue for the quarter was $70,900,000, slightly below the low end of the guidance range of $71,000,000 to $73,000,000, and down 5.3% year over year due to weaker demand for 3D sensing products.
Gross Margin Decline: OSP gross margin decreased by 150 basis points year over year to 50.6%, driven by lower volume and product mix.
Operating Margin Decline: OSP's operating margin fell 400 basis points year over year to 32.4%, attributed to lower gross margin fall through.
OSP Revenue Guidance Stagnation: The guidance for OSP revenue in Q3 is expected to be approximately $75,000,000, indicating a potential stagnation in growth amid ongoing demand challenges.