Shares of Finisar Corporation Plunge 20% on Disappointing Q4 Results

Source: Finisar.

Shares of fiber-optic networking specialist Finisar (NASDAQ: FNSR  ) fell as much as 20% in after-market trading today, following the release of disappointing fourth-quarter results.

Finisar's sales increased 26% year-over-year to $306 million, exceeding Wall Street's $303 million consensus estimate. On the bottom line, non-GAAP earnings landed at $0.36 per diluted share, up from $0.20 per share in the year-ago period. Here, analysts were looking for $0.38 per share.

Both earnings and sales fell within management's guidance ranges for the quarter, albeit below the midpoint of the earnings span.

In commentary on the quarter, management preferred to focus on discussing strong sales while avoiding the reasons behind the disappointing earnings. Adjusted earnings did not include an $8.3 million gain on the sale of Finisar Korea during the quarter. If included, this line item would have added $0.08 per share to the bottom line.

Looking ahead, Finisar expects first-quarter sales of approximately $327 million and adjusted earnings near $0.32 per share. That's a mixed bag, as analysts currently see earnings of $0.41 per share on roughly $317 million in sales for this period/

Finisar CEO Eitan Gartel sees further growth on the horizon, driven by higher-speed optical transceivers. "Demand for transceivers operating at 10Gb/s and faster continued to be strong during the quarter," Gartel said in a prepared statement. "Demand was also strong for our transceivers for LTE wireless applications."

Finisar shares had nearly doubled year-over-year before the market reaction to the fourth-quarter report took the edge off those gains. If current after-hours prices hold until the morning, Finisar would open Friday's session with a 50% annual gain under its belt.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2992757, ~/Articles/ArticleHandler.aspx, 8/29/2015 9:34:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:59 PM
FNSR $15.77 Up +0.05 +0.32%
Finisar Corp CAPS Rating: ****