Why NeoPhotonics Corp. Shares Jumped Today

By Markets Fool.com

Image source: NeoPhotonics.

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What: Shares of NeoPhotonics jumped today, closing out the day with 8% gains, after the company reported fourth-quarter earnings.

So what: Revenue in the fourth quarter came in at a record $89.1 million, a 13% increase from a year ago. Adjusted net income was $6.9 million, or $0.16 per share, which was down year over year. Both top- and bottom-line results easily beat the consensus estimates of $84.9 million in sales and $0.10 per share in non-GAAP profit. Gross margin margin was 28.2%.

Now what: CEO Tim Jenks said 2015 was the best year in NeoPhotonics' history. He added that the market for 100G-and-beyond optical markets continues to grow at a rapid pace, and new products helped drive growth during the quarter. This comes shortly after peer Oclaro reportedly similarly upbeat results a month ago. First-quarter guidance calls for revenue of $92 million to $98 million, with non-GAAP earnings per share of $0.10 to $0.18. Full-year 2016 revenue growth should be approximately 15%.

The article Why NeoPhotonics Corp. Shares Jumped Today originally appeared on Fool.com.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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