Morgan Stanley analyst Meta Marshall believes the market is focusing on the shortfall of 3D sensing expectations at Lumentum (LITE) while missing the $1.00-$1.50 of earnings power to come from its acquisition of Oclaro. There has generally been an assumption built into sell-side expectations that there would be an additional "world-facing" VCSEL-based module on the back of certain Apple (AAPL) iPhones in the fall of 2019 phone, noted Marshall. Given that, she believes that most sell-side estimates would need to come down by 75c-$1.00 if there were no "worldfacing" VCSEL in the iPhone in 2019, unless there was "massive" Android adoption to make up for the difference. The analyst, who prefers to let consensus estimates come down but said she is "more inclined to be positive" in the near-term, keeps an Equal Weight rating and $55 price target on Lumentum shares.

Apple saw sales of its iPhones fall 19.1% in the first three months of the year, CNBC's Ryan Browne reports, citing data from Counterpoint Research. Meanwhile, Huawei saw a 69.7% surge in smartphone sales in the country during the same period, Counterpoint said. Reference Link