Finisar Rides Global Bandwidth Wave, Exceeds Analyst Expectations
Finisar Corporation (NASDAQ: FNSR) had a great day on Friday following the company's latest reports of better-than-expected revenues and earnings, beating the Thomson Reuters' consensus estimate of $0.23 by $0.02. The company said that its growth is being driven by "the global demand for bandwidth."
Finisar reported earnings of 25 cents per share on revenue of $321.1 million.
Exceeded Expectations
Analysts were expecting the company to report earnings of 23 cents per share on revenue of $314.2 million for the most recent quarter. Finisar said its sales for the company's telecommunication applications climbed by 8.2 percent from the previous quarter, driven by a growth in 10 gigabit tunable transceivers and wavelength selective switches.
Related Link: Finisar Up 20% After Earnings Blowout
One of the fiber optics components maker's largest customers include Cisco Systems, Inc. (NASDAQ: CSCO). The company's telecom revenue is expected to continue to grow as strong demand for its 10G tunable transceivers and wavelength-selective switches continues.
"We are seeing continued demand for 100 Gigabit Ethernet transceivers, however we expect that growth to be more than offset by reduced revenue in 40 Gigabit Ethernet transceivers," said chairman & CEO Jerry Rawls. "This is due to the lumpiness in demand at multiple large data-centers," he added.
Looking Ahead
The data communication and tele-services company expects its third quarter EPS to fall somewhere between 19 and 25 cents, with a current market consensus for EPS of 24 cents. Finisar's projected revenue is of $300 to $320 million for the year.
"Revenues for our second fiscal quarter were $321.1 million compared to $314.0 million in the previous quarter; a raise of about 2.3 percent. This raise was primarily driven by growth in 100 gigabit Ethernet transceivers and 10 gigabit tunable transceivers and wavelength selective switches for telecom wavelength division multiplexing applications," said Chief Executive Jerry Rawls.
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Latest Ratings for FNSR
Nov 2015 | B. Riley | Maintains | Neutral | |
Sep 2015 | Barclays | Maintains | Overweight | |
Sep 2015 | B. Riley | Downgrades | Buy | Neutral |
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