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....
Read the full article on Seeking Alpha
For further details see:
Lumentum Holdings: A Poor Performance, Living On The Promise