Lumentum Stock Gains Ahead Of Earnings Amid Apple Market Share Battle

▤ Summary

Apple-supplier Lumentum Holdings (LITE) hit an entry point Monday ahead of its fiscal fourth-quarter earnings report. Up to now, Lumentum has supplied the lions share of Apples optical 3D sensors — used to support facial recognition for unlocking screens. Apple had invested $390 million in Finisar in December 2017 in order to have multiple suppliers of 3D sensors and ramp up manufacturing in a new plant. So now the question is whether II-VI can gain share, either for 3D sensors used in facial recognition or, in the long run, in devices that support augmented reality apps. "Lumentum vs. II-VI has remained a consistent topic of debate since last earnings season," Raymond James analyst Simon Leopold said in a recent report to clients.

▦ Linked Companies