Image source: Finisar Corporation.
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Shares of Finisar Corporation (NASDAQ: FNSR) jumped as much as 18.4% early Friday, then settled to trade up 13.3% as of 3:30 p.m. EDT, after the fiber-optic subsystems and components company released stronger-than-expected fiscal first-quarter 2017 results. The move also extends last month's encouraging trend of rising optical networking stocks.
Quarterly revenue grew 8.7% year over year, to $341.3 million. Based on generally accepted accounting principles (GAAP), net income increased to $23.9 million, or $0.22 per share, compared to GAAP net income of $3.4 million, or $0.03 per share in last year's fiscal Q1. On an adjusted (non-GAAP) basis, Finisar's net income increased 70.5% year over year, to $41.8 million, and climbed 65.2% on a per-share basis, to $0.38.
For perspective, Finisar's guidance called for revenue in the range of $323 million to $343 million, with adjusted earnings per share of $0.27 to $0.33.
Finisar CEO Jerry Rawls explained:
Finally, for the current quarter, Finisar expects revenue of $355 million to $375 million, and adjusted earnings per share of $0.44 to $0.50. By comparison, analysts' consensus estimates predicted fiscal Q2 revenue of $342.9 million, and adjusted earnings of only $0.32 per share.
In the end, this is a fairly straightforward beat-and-raise scenario for Finisar, and it's no surprise to see shares trading significantly higher today.
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