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Finisar Corp. Provides Upbeat Q2 Guidance

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Finisar Corporation (NASDAQ: FNSR) said after the market close on Thursday that it swung to a  fiscal first quarter profit, aided by double digit revenue growth and wider gross margin.

Shares climbed 6.44% in aftermarket hours on Thursday as results exceeded Finisar’s own guidance. The Company also handed upbeat guidance for the current quarter.

For the fiscal second quarter, Finisar anticipates earnings to be in the range of 37 cents to 41 cents a share on revenue of $277 million to $292 million.

Analysts’ consensus estimate was for earnings of 31 cents a share on revenue of $273 million, according to a data compiled by Thomson Reuters.

The Company’s top line growth has been under pressure since last few quarters due to sluggish demand from some of its telecom equipment buyers, which in turn hurt the bottom line.

However, revenue in the latest period rose sharply, thanks to increased demand for 10G, 40G and 100G Ethernet transceivers used in datacom applications.

For the fiscal first quarter ended July 28, the Sunnyvale California based company posted a net income of $26 million or 26 cents a share compared to a net loss of $6.2 million or 7 cents a share, in the year-earlier quarter.

Stripping out onetime items such as stock based compensation and inventory related charges, the adjusted earnings stood at 31 cents a share up from 12 cents a share.

Revenue climbed 21% to $266.1 million.

Earlier in June, the Company provided earnings guidance of 22 cents to 26 cents a share on revenue of $245 million to $260 million, which was below street’s consensus estimate, at that time.

Gross margin improved to 34.3% from 26.2%.

 








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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