LITE - Lumentum Holdings: A Poor Performance Living On The Promise
2024-07-07 11:21:28 ET
Summary
- Lumentum Holdings lost out on bidding for Coherent, which likely saved the business from real financial struggles.
- Shares are down 60% standalone as earnings power has crumbled, with alternative M&A and the standalone business not delivering on its performance.
- While the company touts improvements next year, the near-term outlook suggests a further decline, with continued losses only adding to the debt load here.
In November of last year, I believed it was an odd time for Lumentum Holdings ( LITE ) to announce a substantial deal. The company fortunately lost out in the bidding war for Coherent, but its standalone performance has been underwhelming in the years which followed....
Lumentum Holdings: A Poor Performance, Living On The Promise