The 10-second takeaway
For the quarter ended July 29 (Q1), Finisar missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Finisar logged revenue of $220.5 million. The nine analysts polled by S&P Capital IQ expected revenue of $226.4 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $228.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.12. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.14 per share. GAAP EPS were -$0.07 for Q1 against $0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 300 basis points worse than the prior-year quarter. Operating margin was -2.4%, 580 basis points worse than the prior-year quarter. Net margin was -2.8%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $236.4 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $960.4 million. The average EPS estimate is $0.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 442 members out of 486 rating the stock outperform, and 44 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Finisar a green thumbs-up, and seven 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 $17.29.
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