Finisar Profit Surges, Outlook Strong; Stock Up - Update

(RTTNews) - Telecommunications equipment maker Finisar Corp. (FNSR) Thursday reported a better-than-expected surge in second-quarter profit, helped by growth in revenue and margins. The company also provided strong guidance for the current quarter.

The announcement buoyed up investor sentiment and Finisar stock gained about 7 percent in after-hours trade on the Nasdaq.

Sunnyvale, California-based Finisar posted quarterly net income of $30 million or $0.29 per share, sharply up from $0.3 million or breakeven earnings per share last year.

Results for the reporting quarter and the prior year included unfavorable adjustments of about $14 million each.

Excluding items, adjusted earnings for the quarter were $0.43 per share, compared with $0.15 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.39 per share.

Revenue for the quarter jumped 25 percent to $290.7 million from $232 million in the prior year. Analysts expected revenue of $288.28 million.

While Finisar earlier grappled with soft demand from some customers, it has since regained ground and posted consecutive quarterly revenue growth.

"Revenues grew for the fifth consecutive quarter. This quarter's revenue growth came from both datacom and telecom products," said CEO Jerry Rawls in a statement.

Results were also helped by gross margin that expanded to 35.6 percent from 27.5 percent last year.

For the third quarter, Finisar expects earnings of $0.43 to $0.47 per share and revenue of $290 million to $305 million. Analysts expect earnings of $0.38 per share on revenue of $289.8 million.

Finisar stock closed Thursday at $21.76, up $1.22 or 5.94%, on a volume of 7.9 million shares. In after hours, the stock gained $1.48 or 6.80% at $23.24.