Finisar Earnings: Here’s Why Investors are Excited Now
Finisar Corp. (NASDAQ:FNSR) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down up 3.72%.
Finisar Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 158.33% to $0.31 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Rose 20.66% to $266.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Finisar Corp. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.31. It beat the average revenue estimate of $266.04 million.
Quoting Management: “I am pleased to report first quarter revenues were $266.1 million, an all-time record for Finisar. This was an increase of $22.7 million, or 9.3%, over the prior quarter and an increase of $45.5 million, or 20.7% over the first quarter of the prior year. Revenues exceeded the guidance of $245 million to $260 million that we provided early in the first quarter and grew for the fourth consecutive quarter. The growth in revenues in the first quarter came primarily from increased sales of 10G, 40G and 100G Ethernet transceivers for datacom applications. As a result of these higher than expected revenues, a favorable product mix and operating leverage, we also were able to achieve gross margin and earnings per diluted share that exceeded our original guidance range,” said Jerry Rawls, Finisar’s executive Chairman of the Board.
Key Stats (on next page)…