Why Acacia Communications Stock Jumped 17.6% Friday
What happened
Shares of optical networking technology company Acacia Communications (NASDAQ: ACIA) soared on Friday, rising as much as 18.1%. But the stock finished the trading day up 17.6%.
The stock's gain was fueled by the company's fourth-quarter results, which featured better-than-expected top- and bottom-line figures.
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So what
Acacia posted fourth-quarter revenue of $107.1 million, up 23.7% year over year. On average, analysts were expecting revenue of $103 million. The company's non-GAAP (generally accepted accounting principles) earnings per share was $0.41, up from $0.27 in the year-ago quarter. This beat analysts' consensus estimate for non-GAAP EPS of $0.35.
"I am pleased with our strong fourth quarter results," said Acacia CEO Raj Shanmugaraj, "which exceeded the high end of our guidance on revenue, non-GAAP net income and non-GAAP diluted earnings per share." The CEO also noted that the company made progress on its efforts to diversify its revenue base and expand its product portfolio.
Now what
For its first quarter, management expects revenue between $96 million and $104 million. Analysts expected just $92.6 million of revenue during the quarter. The company also guided for first-quarter non-GAAP EPS between $0.18 and $0.34, which encompasses analysts' consensus forecast for non-GAAP EPS of $0.24 during the period.
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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
