Lumentum's Q2 Earnings Report Sparks Stock Volatility

Lumentum Holdings' stock dropped despite beating analyst targets for its fiscal second quarter of 2024, as the company's results, while better than expected, were still far from good. The company's sales fell 27.5% compared to the same quarter last year, with gross margin and operating losses worsening. CEO Alan Lowe attributed the poor results to "sluggish" carrier capital expenditures and warned of continued challenges throughout fiscal 2024. With flat to declining sales and earnings outlook, there is little compelling reason to own Lumentum stock at this time.