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Finisar Jumps 4% After Q2 Earnings Beat, Strong Guidance

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Finisar Corporation (NASDAQ: FNSR) is getting some investor love this afternoon after the company reported its second quarter results and positive expectations for the third quarter.

The company reported a Q2 EPS of $0.43 versus the Street estimate of $0.39, beating by $0.04.

Earnings per share were up 187 percent from the year-ago period.

Revenue arrived at $290.7 million versus the Street estimate of $285.71M. Sales were up 25 percent year-over-year.

"I am pleased to report second quarter revenues were $290.7 million, a new all-time record for Finisar," Jerry Rawls, Finisar's Executive Chairman of the Board, said in a company release. "Revenues increased by $24.7 million, or 9.3%, over the first quarter and $58.7 million, or 25.3%, over the second quarter of the prior year. Revenues grew for the fifth consecutive quarter. This quarter's revenue growth came from both datacom and telecom products."

"During the quarter, we continued to make significant strides in new product development that we believe will drive future revenue growth," added Eitan Gertel, Finisar's Chief Executive Office, who was also quoted in the company release. "For example, we demonstrated our new 100Gbps CFP4 Ethernet transceiver for short reach datacom applications. This transceiver provides 75% greater face plate density and 80% less power consumption than our original CFP."

Finisar expects to report a Q3 EPS between $0.43 and $0.47 versus the Street estimate of $0.38. Sales are expected to fall within the $290 million to $305 million range versus the Street estimate of $289.8 million.

The company's shares have been enjoying a bit of a growth spurt, rising more than 59 percent over the last six months. However, the stock is down from its year high of $26.36, which was achieved on October 22.

Finisar is currently up more than four percent in after hours trading. The stock closed at $21.76 today -- up 5.94 percent.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

 

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Posted-In: Eitan Gertel Finisar Finisar Corporation Jerry RawlsEarnings News

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