Shares of fiber-optics makers like JDS Uniphase (NASDAQ:JDSU) tumbled Wednesday morning as gloomy guidance from rival Finisar (NASDAQ:FNSR) spooked the industry.
Sunnyvale, Calif.-based Finisar plummeted nearly 40% a day after saying it expects EPS of just 31 to 35 cents on sales of $235 million to $250 million for its fiscal fourth quarter. Analysts had been calling for much stronger EPS of 48 cents on sales of $268.6 million.
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The weak outlook overshadowed Finisar’s stronger-than-expected fiscal third-quarter sales of $263 million and in-line earnings of 47 cents a share.
The pain was felt by other fiber-optics companies, including JDS Uniphase, which retreated 13% from a 5-year high to $22.08. Oclaro (NASDAQ:OCLR) tumbled 17% and Ciena (NASDAQ:CIEN) lost 5%.