Companies /Technology

Viavi Solutions Inc

NASDAQ: VIAV Communication Equipment
$47.10
▲ $2.32 (+5.18%) today
Markets closed · 2:36am ET

Q4 2024 Earnings

Reported Aug 8, 2024, 4:07pm ET · SEC source
$0.08
Beat +14.29%
EPS · est. $0.07
$252.0M
Beat +0.47%
Revenue · est. $250.8M
+10.0%
Beating market
VIAV vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%−6%−3%0Aug 8Aug 9report 4:07pm ETearnings+0.4%−7.1%
−9%−6%−3%0Aug 8Aug 9earnings+0.4%−7.1%
VIAV −7.1%S&P 500 +0.4%
−9%−6%−3%0Aug 8Aug 9report 4:07pm ETearnings+0.4%−7.1%
−9%−6%−3%0Aug 8Aug 9earnings+0.4%−7.1%
VIAV −7.1%NASDAQ +0.4%
−8%−4%0+4%Aug 7Aug 16report 4:07pm ETearnings+4.4%+3.3%
−8%−4%0+4%Aug 7Aug 16earnings+4.4%+3.3%
VIAV +3.3%S&P 500 +4.4%
−5%0+5%Aug 7Aug 16report 4:07pm ETearnings+5.8%+3.3%
−5%0+5%Aug 7Aug 16earnings+5.8%+3.3%
VIAV +3.3%NASDAQ +5.8%
−7.12%
Day of report
+3.29%
Next session
+11.23%
One week
+13.97%
30 days

S&P 500 over the same 30 days: +4.02%.

Did VIAV Beat Earnings? Q4 2024 Results

VIAVI Solutions delivered a modest but clean beat in fiscal Q4 2024, posting non-GAAP EPS of $0.08 against a $0.07 consensus estimate, a 14.29% beat, while revenue of $252.00 million edged past the $250.82 million expected, even as the top line fell 4.4% year-over-year amid persistently soft end-market spending. The key story behind the numbers was a meaningful contribution from the Optical Security and Performance Products segment, where revenue climbed 6.2% year-over-year to $69.80 million and operating margin expanded to 34.8% from 29.5%, helping cushion a 9.7% decline in the larger Network Enablement segment to $158.50 million. The full fiscal year told a tougher tale, with annual revenue slipping 9.6% to $1.00 billion and non-GAAP EPS falling to $0.33 from $0.55. Looking ahead, VIAVI guided Q1 FY2025 revenue to $235.00 million to $245.00 million, with non-GAAP EPS of $0.05 to $0.07, as management anticipates NSE demand bottoming out before a gradual recovery in the second half of fiscal 2025.

Key Takeaways
  • Stronger OSP revenues offsetting softer NSE demand
  • Anemic end-market spend environment throughout fiscal 2024
  • OSP operating margin expanded to 34.8% from 29.5% year-over-year
  • Non-GAAP gross margin improved to 59.6% from 58.2% year-over-year in Q4

“Fiscal 2024 was a challenging year for VIAVI, as the end market spend environment continued to be anemic throughout the year. For the fourth quarter, our revenue came at the mid-point of our guidance, with slightly stronger OSP revenues offsetting softer NSE demand. We believe the decline in NSE demand is bottoming out and expect to see gradual recovery in the second half of fiscal 2025.”

Viavi Solutions CEO, on the earnings call

Forward Guidance & Outlook

For Q1 FY2025 ending September 28, 2024, VIAVI expects net revenue of $235 million to $245 million and non-GAAP EPS of $0.05 to $0.07. Management believes the decline in NSE demand is bottoming out and expects gradual recovery in the second half of fiscal 2025. The company also expects approximately $25 million in annualized cost savings from its Fiscal 2024 restructuring plan, which is anticipated to be substantially complete by end of fiscal 2025.

VIAV YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$80.0M$160.0M$240.0M$263.6M$252.0MRevenue$143.8M$145.6MGross Profit
$0$80.0M$160.0M$240.0MRevenueGross Profit

VIAV Revenue by Segment

Network and Service Enablement
Network Enablement$158.5M−9.7%
Optical Security and Performance Products$69.8M+6.2%
Service Enablement$23.7M+5.8%

VIAV Revenue by Geography

Americas$98.8M
Asia Pacific$91.5M
EMEA$61.7M

Figures from SEC filings and company reports. Not investment advice.