Viavi Solutions (VIAV) reports Q3: everything you need to know ahead of earnings

What happened

Viavi Solutions will report earnings on Wednesday after market hours. Last quarter, the network testing company beat analysts' revenue expectations with revenues of $443.1 million, up 52.5% year on year, and also beat analysts' earnings-per-share estimates.

Confirmed

Global impact / market context

The market expects revenue to grow 52.1% this quarter, faster than last year's 25.6% increase. If Viavi meets that expectation, it would show its sales growth is holding up, which matters for investors judging whether the stock deserves its recent gains.

Analyst inference

Analysts have kept their estimates unchanged over the last 30 days, suggesting they expect the business to stay on course. Among peers, Teledyne grew revenue 9.4% and Itron 3%, both beating expectations, though Teledyne's stock fell 1.9% after its results.

Analyst inference

What to watch

1. Viavi will report its earnings on Wednesday after market hours, so the results and any movement in the stock will not appear until that release. Confirmed
2. Compare actual revenue with the 52.1% year-on-year growth analysts expect and check whether profit per sale holds up after last quarter's earnings-per-share beat. Proposed
3. Watch how the stock moves after the report, since Teledyne fell 1.9% despite beating estimates, showing a beat alone may not lift a share price. Analyst inference

Evidence

• stockstory.org