Finisar Increases Sales but Misses Revenue Estimate

Finisar (Nasdaq: FNSR  ) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q4), Finisar missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Finisar notched revenue of $239.9 million. The nine analysts polled by S&P Capital IQ expected a top line of $244 million on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $236.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.21. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS of $0.14 for Q4 were 18% lower than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.9%, 420 basis points worse than the prior-year quarter. Operating margin was 5.0%, 650 basis points worse than the prior-year quarter. Net margin was 5.5%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $250.5 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.17.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 442 members rating the stock outperform and 43 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Finisar a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Finisar is outperform, with an average price target of $22.55.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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