Investing.com - Lumentum fell Tuesday on mixed fiscal second-quarter earnings, keeping the semiconductor sector grounded.
Chipmaker Lumentum (NASDAQ:LITE) reported earnings that beat estimates on the top line but missed on the bottom line, sending its shares more than 3% lower.
The chipmaker reported earnings of $1.15 a share, below Investing.com's estimates of $1.17 a share. While revenue came in at $373.7 million, above estimates for $356.16 million.
Analysts at JPMorgan said the robust revenue generated in the quarter was offset by weaker-than-expected margin performance and earnings. Soft guidance was also cited as a headwind.
"Guidance for fiscal third quarter 2019, though in line with consensus on revenue, is modestly softer for operating margins and earnings per share," JPMorgan said.
Hard-disk storage provider Seagate Technology (NASDAQ:STX) posted a second-quarter earnings and revenue beat despite grappling with tough backdrop for the memory market.
But Wall Street overlooked the upbeat results as the company's dour third-quarter guidance fuelled worries. Its shares fell 2%.
"Seagate Technology's second-quarter earnings and revenue beats came from solid state drive storage solutions as internal and specialized hard drive revenue was in line with forecasts, but the positive financials are in contrast to the third-quarter outlook," BMO said in a note.
The bank pinned the company's weaker guidance on management efforts to reduce manufacturing in a bid to offset demand pressures.
Rival hard-drive products maker Western Digital (NASDAQ:WDC) slipped 1.5%, but has held the bulk of gains generated since it reported earnings and revenue that fell short of Investing.com's estimates on Jan. 24.
The Philadelphia Semiconductor index was flat for the day and is down 1.8% over the past year.