Viavi Solutions (NASDAQ:VIAV) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Viavi Solutions (NASDAQ:VIAV) posted its quarterly earnings results on Wednesday. The communications equipment provider reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.04, FiscalAI reports. The firm had revenue of $443.10 million during the quarter, compared to analyst estimates of $432.62 million. Viavi Solutions had a positive return on equity of 16.80% and a negative net margin of 4.03%. 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 Stock Performance

Shares of VIAV traded down $1.42 during mid-day trading on Wednesday, hitting $38.90. 7,372,695 shares of the company traded hands, compared to its average volume of 6,350,589. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.39 and a current ratio of 1.61. The stock has a 50-day moving average price of $44.82 and a two-hundred day moving average price of $38.66. Viavi Solutions has a 1 year low of $9.92 and a 1 year high of $60.43. The stock has a market cap of $9.10 billion, a price-to-earnings ratio of -162.08 and a beta of 1.21.

Insiders Place Their Bets

In related news, CEO Oleg Khaykin sold 136,547 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $51.82, for a total value of $7,075,865.54. Following the sale, the chief executive officer owned 1,188,798 shares in the company, valued at approximately $61,603,512.36. This trade represents a 10.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Viavi Solutions

Several hedge funds and other institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its holdings in shares of Viavi Solutions by 3.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 6,846,226 shares of the communications equipment provider’s stock valued at $86,875,000 after buying an additional 231,570 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Viavi Solutions by 431.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 6,639,682 shares of the communications equipment provider’s stock worth $84,258,000 after acquiring an additional 5,389,435 shares during the period. Invesco Ltd. increased its position in Viavi Solutions by 116.0% during the fourth quarter. Invesco Ltd. now owns 3,809,513 shares of the communications equipment provider’s stock valued at $67,886,000 after acquiring an additional 2,045,702 shares during the last quarter. Goldman Sachs Group Inc. increased its position in Viavi Solutions by 65.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 2,195,062 shares of the communications equipment provider’s stock valued at $39,116,000 after acquiring an additional 869,465 shares during the last quarter. Finally, Marshall Wace LLP lifted its holdings in Viavi Solutions by 1,011.9% in the fourth quarter. Marshall Wace LLP now owns 2,187,600 shares of the communications equipment provider’s stock valued at $38,983,000 after acquiring an additional 1,990,848 shares during the period. 95.54% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts have recently issued reports on VIAV shares. Wall Street Zen upgraded shares of Viavi Solutions from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Rosenblatt Securities reissued a “buy” rating and set a $70.00 price target on shares of Viavi Solutions in a research report on Wednesday, June 10th. Weiss Ratings lowered shares of Viavi Solutions from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, July 16th. Susquehanna increased their target price on Viavi Solutions from $65.00 to $66.00 and gave the company a “positive” rating in a research note on Wednesday, July 1st. Finally, B. Riley Financial lifted their target price on Viavi Solutions from $26.00 to $53.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $42.88.

About Viavi Solutions

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.