Image source: Acacia Communications, Inc.
What:Shares of Acacia Communications, Inc. (NASDAQ: ACIA) were up 10.8% Monday, extending a more-than-41% pop Friday after the recently public optical interconnect products specialist posted blowout second-quarter 2016 results.
So what:In its report Thursday after the market close, Acacia CEO Raj Shanmugaraj cited "the success of our disruptive technology in transforming cloud, content, and communications networks" for driving results that "exceeded our expectations across the board."
More specifically, Acacia's quarterly revenue more than doubled year over year, to $116.2 million, while adjusted net income per diluted share more than quadrupled, to $0.77.Analysts on average were looking for revenue of just $86 million, and adjusted earnings of only $0.13 per share.
Now what:To be fair, it's not entirely surprising to see this kind of volatility surrounding Acacia considering it only just priced its initial public offering in May. So it may take some time for investors to get a better feel for its propensity for under promising and over delivering with each passing quarter as a publicly traded company. But given the gravity of its inaugural quarterly beat, it's hard to blame investors for so ferociously bidding up Acacia Communications shares the past two trading days. While I'm not particularly anxious to dive in today after the pop, you'll be hard pressed to find any investor willing to complain about these gains.
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