Viavi shares rise 4.9% after hours after Q1 profit tops estimates

Viavi (VIAV) said on Nov. 4 that fiscal first-quarter revenue rose 56.9% from a year earlier to $469.3 million, and that non-GAAP earnings reached 47 cents per share.

Shares rose 4.9% in after-hours trading as of 5:30 p.m. ET, from a regular-session close of $29.25.

Here's how the company did:

• Non-GAAP diluted EPS: 47 cents per share vs. 15 cents a year earlier, topping the 42 cents consensus estimate
• Revenue: $469.3 million vs. $299.1 million a year earlier, above the $464.16 million consensus estimate
• Non-GAAP operating margin: 29.0% vs. 16.3% a year earlier

GAAP net income was $76.0 million, or 29 cents per diluted share, compared with a loss of $21.4 million a year earlier.

The first-quarter results came in above the range the company gave on Aug. 5, which was $450 million to $460 million in revenue and 40 cents to 42 cents in non-GAAP EPS.

"Fiscal 2027 is off to a strong start with first quarter performance coming in above the high end of our guidance," said CEO Oleg Khaykin. "We expect our growth momentum to continue driven by the inherent market demand and expanding opportunities in data center and aerospace and defense end markets."

Guidance for the second quarter

For the quarter ending Jan. 2, 2027, the company expects net revenue of $505 million to $515 million and non-GAAP EPS of 50 cents to 52 cents.

The company said it cannot reconcile that EPS outlook to GAAP EPS because it cannot forecast certain charges, including restructuring, acquisition and integration costs, without unreasonable effort.

Revenue has risen in each of the last three quarters, from $299.1 million to $443.1 million, according to its SEC filings.

Share repurchase authorization

The board authorized a new repurchase program on Nov. 1 for up to $500 million of common stock. It is in addition to $300 million previously authorized under the 2022 Repurchase Plan, which has about $18.4 million remaining.

The company may buy shares through open market purchases, a 10b5-1 plan, accelerated share repurchases, privately negotiated transactions or other available methods. It is not obligated to buy any particular amount, and the program runs until the authorized amount is repurchased or the company suspends or ends it.

Cash and debt

As of Oct. 3, the company held $535.3 million in total cash, short-term investments and restricted cash. It had $250.0 million of 0.625% senior convertible notes and $400.0 million of 3.75% senior notes, with a total net carrying value of $642.5 million.

Cash flow from operations for the quarter was $104.7 million.

The company will discuss the results on a live webcast at 1:30 p.m. Pacific Time on Nov. 4.