Finisar Corporation (NASDAQ:FNSR) recently unveiled its latest quarterly results for the quarterly period ended October 28 this year.
The company managed to outperform the Thomson Reuters Consensus estimate after hitting a $0.26 earnings per share. The consensus estimate had been set at $0.10 which means that the company surpassed the target by $0.16. Finisar also reported a negative net margin at 6.71% and it also reported a 1.24% positive return on equity. The company also managed to beat Zack’s consensus estimates by 5 cents despite its top line and bottom line declining year over year.
A breakdown of Finisar’s financial performance
Despite the impressive performance, Finisar also reported a $5.3 million net loss equivalent to a 4 cents per share net loss on a GAAP basis. The company reported a 5 cents per share or $5.9 million net income for the quarter. The net loss was as a result of higher startup costs and lower revenues.
Finisar’s non-GAAP net income grew slightly from 23 cents per share or $26.1 million in the recent quarter compared to 26 cents per share or $30.6 million per share reported in Q2 of 2017. Finisar’s quarterly revenues experienced a 2% year-over-year decline to $325.4 million. The decline is mainly attributed to the low revenue from the Ethernet and 10-gig transceivers.
Revenue costs were higher in the recent quarter at $239.2 million compared to $235.4 million in the corresponding quarter in the previous year. The Q2 2018 gross profit came in at $85.7 million which was lower than the $96.2 million reported in Q2 of the previous year. There was also an increase in quarterly revenues year-over-year from $86.7 million to $89.8 million.
The company’s operating loss was $4.1 million compared to the $9.5 million reported in Q2 of the previous year. This loss was due to higher operating expenses and lower gross profit.
Finisar’s stock performance
Other than the $0.26 EPS reported for the recent quarter, the company’s shares also experienced a 16.69% percent one-year price change. The price of the stock at the time of this press was $22.49. So far the price of the stock has experienced a $14.25 one-year low and its one-year high currently stands at $25.41.
The current price means that the stock price is approaching its one-year high and might even surpass that mark if it proceeds with its current momentum. However, the price might also move in the opposite direction based on market conditions.
According to Zacks, Finisar’s stock performance has been quite strong for the past three years. The market analysis and research firm claims that the company’s stock gained by +21.9% just last year alone. The research firm claims that the company’s performance has been relatively consistent for the past 17 years. So far the company has not offered any performance guidance due to an upcoming acquisition deal which might result in significant performance changes.
Finisar is one of the leading companies in the optical communications industry. It supplies optical communication products and has been doing so for the last 30 years. The company boasts of an impressive product portfolio that has allowed it to lead the industry in terms of providing ground-breaking world-class solutions and optics products.
Finisar’s range of products includes optical engines, active optical cables, optical transceivers, optical instrumentation, diffraction gratings and sensing components among others. The company’s extensive product line targets the global market. Finisar is also convinced that it is moving towards the right direction and that it is well-positioned to leverage more growth in the future as the optics industry continues to grow.