Will 3D Sensing Be Lumentum’s Big Play?

Lumentum Holdings (NASDAQ: LITE) has risen impressively on the stock market this year based on speculation that it would be one of the suppliers for Apple's (NASDAQ: AAPL) new iPhones. This rumor now seems to have turned into reality, as the optical components specialist is reportedly the sole supplier of the laser dot projector hardware (technically known as vertical-cavity surface-emitting laser, or VCSEL) that's used to enable the Face ID feature in the iPhone X.

Lumentum recently offered up guidance that backs up the speculation that it landed a design win at Apple. The chipmaker expects $360 million in revenue during the December-ended quarter at the midpoint of its guidance, which is well ahead of the Wall Street estimate of $345 million. Additionally, its projected earnings per share of $1.05 to $1.25 comfortably exceeded the consensus expectation of $1.00 per share.

By comparison, Lumentum pulled in $265 million in revenue in the prior-year period, which means that its December quarter revenue is set to rise almost 36% year over year. This wouldn't have been possible without a contract from Apple, which has reportedly given Lumentum $300 million worth of orders for 3D sensing chips since April.

Source: Fool.com