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3 Stocks to Watch Thursday

Shares of Finisar Corp.(NASDAQ:FNSR) gained more than 1% on Thursday after the company posted first-quarter results. Revenue declined 10.2% from the prior-year quarter to $285.03 million, falling short of expectations by $20.8 million. The company posted earnings of 23 cents per share, missing estimates by 2 cents.

Revenue for datacom applications decreased almost 9% to $19.4 million due to a decline in VCSELs arrays for 3-D applications and lower demand for fibre channel transceivers. Further, sales for telecom applications declined 6.2% to $5.6 million.

Moreover, the gross profit was $85.3 million, up from $80.7 million, and total operating expenses declined to $94.8 million from $96.4 million due to lower research and development costs.

During the quarter ended June 30, Chuck Royce (Trades, Portfolio) reduced his holding by 35% to 386,800 shares. Jeremy Grantham (Trades, Portfolio) established a new position, buying 467,120 shares. Jim Simons (Trades, Portfolio)' Renaissance Technologies boosted its stake by 288% to 2,534,500 shares.

Shares of MongoDB Inc. (NASDAQ:MDB) fell 6% despite reporting second-quarter revenue of $99.37 million and a loss of 26 cents per share, which were both higher than analysts' estimates.

"MongoDB's strong second-quarter results are the latest indication of our growing leadership position as the modern data platform of choice," President and CEO Dev Ittycheria said.

For the quarter, the gross profit was $69.2 million, indicating a 70% gross margin, which is down 200 basis points from the year-ago period. Further, the non-GAAP gross profit was $71.1 million, representing a 72% non-GAAP gross margin.

Looking ahead to the third quarter of fiscal 2020, the company expects revenue to be between $98 million and $100 million.

At the end of the second quarter, Chase Coleman (Trades, Portfolio) added 71% to his holding, Paul Tudor Jones (Trades, Portfolio) boosted his position by 2% and Joel Greenblatt (Trades, Portfolio) incresed his holding by 218% to 32,722 shares. Caxton Associates (Trades, Portfolio) sold out of the stock.

Shares of Ciena Corp. (NYSE:CIEN) fell more than 3% after announcing third-quarter results. The company posted earnings of 71 cents per share on $960.6 million in revenue. It beat earnings estimates by 13 cents and revenue expectations by $29.96 million.

"We delivered another quarter of outstanding financial results as we benefit from our strong competitive position within the industry and continue to gain market share," President and CEO Gary Smith said.

Looking ahead to the fourth quarter, Chief Financial Officer James Moylan said the adjusted gross margin is expected to be between 42% and 43%, which is down from 44.7% in the third quarter. Also, the company projects fourth-quarter revenue in the range of $945 million to $975 million.

Royce boosted his positon by 15% during the quarter.

Disclosure: The author holds no positions in any stocks mentioned.

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This article first appeared on GuruFocus.