Finisar Corporation (Nasdaq: FNSR) posted worse than expected earnings and guidance, sending its shares plummeting as much as 14% in aftermarket trading.
Written by StockNews.com
The Sunnyvale, CA-based optical subsystems maker reported adjusted Q3 EPS of $0.59, which was $0.03 worse than the Wall Street consensus estimate of $0.62.
Revenues jumped 23.1% from last year to $380.6 million, but missed the $389.69 million that analysts expected.
Looking ahead, FNSR provided a fourth quarter outlook that also fell short of Wall Street’s view. The company forecast Q4 EPS of $0.50 to $0.56, versus analysts’ $0.58 estimate, and revenues ranging from $360 to $380 million, versus analysts’ $393.09 million outlook.
The company commented via press release:
“I am pleased to announce that Finisar achieved another new all-time quarterly records for revenues and Non-GAAP profits in our third quarter. Revenues were $380.6 million, an increase of $10.7 million, or 2.9%, over the second quarter and 23.1% over the third quarter a year ago. This growth was primarily driven by strong demand for 100G transceivers. In addition, customer demand for wavelength selective switch and ROADM line card products continued to be strong,” said Jerry Rawls, Finisar’s Chief Executive Officer.
Investors were none too pleased with the company’s results, as Finisar shares plunged $5.00 (-14.33%) to $29.90 in after-hours trading Thursday. Year-to-date, FNSR had gained 15.30% prior to today’s report, versus a 5.95% rise in the benchmark S&P 500 index during the same period.
FNSR currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #6 of 53 stocks in the Technology – Communication/Networking category.
