Shares of Lumentum (NASDAQ:LITE) shares dropped more than 9% after the company reported its preliminary Q3 results, which came in worse than the Street estimates.
The company expects Q3 net revenue in the range of $380-$384 million, compared to the Street estimate of $444.1 million.
This was primarily due to the fact that late in the quarter, a network equipment manufacturer, which represents around 10% of total quarterly revenue, canceled shipments that were originally projected for the quarter.
The company’s board of directors approved an increase in its share repurchase authorization to a total of $1.2 billion from the previous $1 billion.