Network testing solutions company Viavi Solutions (NASDAQ: VIAV) will be reporting results this Wednesday after market close. Here’s what to look for.
Viavi Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $369.3 million, up 36.4% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Viavi Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Viavi Solutions’s revenue to grow 38% year on year, improving from the 15.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Viavi Solutions has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Viavi Solutions’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Teledyne delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 3%, and Badger Meter reported a revenue decline of 9%, falling short of estimates by 12.5%. Teledyne traded up 1.4% following the results while Badger Meter was down 25.5%.
Read our full analysis of Teledyne’s results here and Badger Meter’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 15.1% on average over the last month. Viavi Solutions is up 41.9% during the same time and is heading into earnings with an average analyst price target of $40.43 (compared to the current share price of $45.13).
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