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

Viavi Solutions (NASDAQ:VIAV) announced its quarterly earnings results 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. Viavi Solutions had a positive return on equity of 23.56% and a negative net margin of 2.00%.The company had revenue of $443.10 million during the quarter, compared to the consensus estimate of $432.62 million. During the same period in the previous year, the company posted $0.13 earnings per share. Viavi Solutions’s revenue for the quarter was up 52.5% on a year-over-year basis. 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 Down 3.5%

Shares of VIAV stock traded down $1.41 on Friday, hitting $39.18. 1,413,560 shares of the stock traded hands, compared to its average volume of 6,321,752. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.39 and a current ratio of 1.61. Viavi Solutions has a twelve month low of $10.30 and a twelve month high of $60.43. The firm’s 50-day moving average price is $44.38 and its two-hundred day moving average price is $38.96. The stock has a market capitalization of $9.16 billion, a PE ratio of -260.84 and a beta of 1.21.

Analysts Set New Price Targets

Several equities analysts recently issued reports on VIAV shares. B. Riley Financial decreased their target price on shares of Viavi Solutions from $63.00 to $60.00 and set a “buy” rating for the company in a research note on Thursday. Wall Street Zen raised shares of Viavi Solutions from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. UBS Group cut their price target on Viavi Solutions from $60.00 to $44.00 and set a “neutral” rating for the company in a research note on Thursday. Susquehanna increased their price target on Viavi Solutions from $65.00 to $66.00 and gave the stock a “positive” rating in a research report on Wednesday, July 1st. Finally, Rosenblatt Securities restated a “buy” rating and issued a $70.00 price objective on shares of Viavi Solutions in a research report on Thursday. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $49.88.

Trending Headlines about Viavi Solutions

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

• Positive Sentiment: Viavi reported fiscal fourth-quarter EPS of $0.34, above the $0.30 consensus estimate, while revenue rose 52.5% year over year to $443.1 million, exceeding expectations of $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 issued substantially stronger-than-expected first-quarter fiscal 2027 guidance, calling for EPS of $0.40-$0.42 versus the $0.27 consensus and revenue of $450 million-$460 million versus $433.2 million. The company also outlined a goal of reaching a $500 million quarterly revenue run rate in calendar 2027. Viavi anticipates Q1 FY2027 EPS of $0.40-$0.42
• Positive Sentiment: Stifel raised its VIAV price target to $65 and kept a Buy rating, while Rosenblatt reaffirmed Buy with a $70 target, signaling continued confidence in the company’s growth prospects.
• Neutral Sentiment: Needham and B. Riley lowered their price targets to $60 but retained Buy ratings. The revisions suggest analysts remain constructive while adopting more measured valuation assumptions.
• Negative Sentiment: UBS cut its target from $60 to $44 and moved to a Neutral rating, highlighting valuation concerns despite the earnings beat and improved outlook.
• Negative Sentiment: Recent disclosure showed significant insider selling, including sales by CEO Oleg Khaykin, with no reported insider purchases during the past six months. This may weigh on sentiment by suggesting limited near-term insider accumulation.

Hedge Funds Weigh In On Viavi Solutions

Institutional investors and hedge funds have recently bought and sold shares of the company. Hsbc Holdings PLC purchased a new stake in shares of Viavi Solutions during the 4th quarter valued at approximately $218,000. Corient Private Wealth LLC lifted its holdings in Viavi Solutions by 3.6% in the fourth quarter. Corient Private Wealth LLC now owns 11,400 shares of the communications equipment provider’s stock valued at $204,000 after acquiring an additional 394 shares during the last quarter. Invesco Ltd. grew its position in Viavi Solutions by 116.0% in the fourth quarter. Invesco Ltd. now owns 3,809,513 shares of the communications equipment provider’s stock worth $67,886,000 after acquiring an additional 2,045,702 shares during the period. Vident Advisory LLC purchased a new position in Viavi Solutions in the fourth quarter worth approximately $410,000. Finally, State of Tennessee Department of Treasury increased its stake in Viavi Solutions by 4.0% during the fourth quarter. State of Tennessee Department of Treasury now owns 86,904 shares of the communications equipment provider’s stock worth $1,549,000 after acquiring an additional 3,340 shares during the last quarter. 95.54% of the stock is currently owned by institutional investors and hedge funds.

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.