NASDAQ$VIAV

Viavi Solutions · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

VIAVI reported a net revenue of $256.2 million and non-GAAP EPS of $0.14 for Q3 2020.

VIAVI's Q3 2020 revenue was below guidance due to the COVID-19 pandemic, but disciplined OPEX management allowed them to meet non-GAAP EPS guidance. The NSE segment was most affected by the pandemic, while the OSP segment saw some late-quarter customer order increases. The company has a strong balance sheet with over $530 million in cash and a $300 million line of credit.

  • Net revenue was $256.2 million, a decrease of 3.4% year-over-year.
  • GAAP operating margin was 3.6%, up 60 bps year-over-year.
  • Non-GAAP operating margin was 14.8%, up 10 bps year-over-year.
  • Non-GAAP EPS was $0.14, up $0.01 or 7.7% year-over-year.

Headline financials

Total Revenue

$256M

Previous: $265M-3.4%
EPS (adj)

$0.14

Previous: $0.13+7.7%
Capital Expenditures

-$23.6M

Previous: -$34.7M+32.0%
Free Cash Flow

-$56.4M

Previous: -$39.5M-42.8%
Net Income

-$32.8M

Previous: -$4.8M-583.3%
Operating Income

$9.1M

Previous: $7.9M+15.2%
Gross Profit

$147M

Previous: $154M-4.4%
Cash & Equivalents

$533M

Previous: $503M+5.9%
Total Assets

$1.78B

Previous: $1.81B-1.7%
Stock-Based Comp

$11.7M

Previous: $10.8M+8.3%

Revenue & EPS history

Viavi · Revenue · Quarterly

$256M

Q3 2020-3.4%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Viavi · $69.2M total across 1 segment · Q3 2020

  • Optical Security and Performance Products
    $69.2M+15.7%

Forward guidance

Due to macroeconomic and business uncertainty as a result of the COVID-19 global pandemic, VIAVI is not providing fiscal fourth quarter 2020 guidance. Fiscal fourth quarter revenue is expected to be sequentially flat to slightly better than fiscal third quarter 2020 driven by seasonal strength in NSE.

Tailwinds

  • Fiscal fourth quarter revenue is expected to be sequentially flat to slightly better than fiscal third quarter 2020
  • Seasonal strength in NSE

Headwinds

  • Due to macroeconomic and business uncertainty
  • COVID-19 global pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.6%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+20.5%

Q2 2025

Best reaction

-24.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+6.2%+1.1%-7.3%
Q2 2026+17.4%-0.8%+20.3%
Q1 2026+2.6%+2.0%+4.9%
Q3 2025-12.2%-15.4%-14.5%
Q2 2025+20.5%+26.8%+11.9%
Q1 2025+4.3%+3.4%+5.2%
Q4 2024-1.9%+2.8%+6.3%
Q3 2024-4.5%-6.1%-5.1%
Q2 2024-3.5%-8.1%-1.0%
Q1 2024+8.8%+7.3%+9.7%
Q4 2023-3.2%-5.5%-8.8%
Q3 2023+0.2%+1.9%+9.1%
Q2 2023+2.0%-0.3%-6.3%
Q1 2023-24.7%-26.9%-23.6%
Q4 2022+1.4%+2.0%-6.5%
Q3 2022+2.7%-0.9%+3.4%
Q2 2022+4.2%+5.7%-2.2%
Q1 2022-4.3%-5.9%-5.8%
Q4 2021-0.7%-0.2%-0.3%
Q3 2021-3.4%+0.1%+5.6%
Q2 2021+1.3%+3.8%-3.3%
Q1 2021+3.3%+3.4%+8.8%
Q4 2020-0.5%-3.3%-19.8%
Q3 2020-3.5%-2.1%+8.2%
Q2 2020+5.5%-0.2%-9.0%
Q1 2020+8.6%+7.4%+2.2%
Q4 2019-2.6%-1.6%+4.8%
Q3 2019+3.0%+1.9%-9.7%
Q2 2019+7.5%+6.0%+12.7%
Q1 2019-5.9%-6.8%-12.1%
Q4 2018-4.6%+0.6%+3.1%
Q3 2018+2.5%+4.9%+1.6%
Q2 2018+16.6%+16.4%+14.1%
Q1 2018-6.3%-4.3%-1.1%
Q4 2017-1.5%-6.1%-7.6%
Q3 2017+2.8%+12.1%+14.4%
Q2 2017+5.1%+4.4%+10.6%
Q1 2017+0.7%+2.5%+7.3%
Q4 2016+0.3%+4.4%+3.4%
Q3 2016-3.5%
Q2 2016+16.8%
Q1 2016+6.2%
Q4 2015-10.5%
Q3 2015-5.1%
Q2 2015+0.7%
Q1 2015-0.5%
Q4 2014+0.2%
Q3 2014+0.4%
Q2 2014+4.7%
Q1 2014-5.4%
Q4 2013+0.4%
Q3 2013-3.7%
Q2 2013+0.5%
Q1 2013+0.0%
Q4 2012+1.9%
Q3 2012-2.3%
Q2 2012+8.2%
Q1 2012-7.1%
Q4 2009+5.6%
Q4 2011+5.6%
Q3 2010-0.7%
Q3 2011-0.7%
Q2 2011+7.9%
Q2 2010+7.9%
Q1 2010-0.3%
Q1 2011-0.3%
Q4 2010-0.3%

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