What: Shares of Oclaro, Inc. (NASDAQ:OCLR) were moving higher today after the company blew past estimates in its fourth-quarter earnings report. As of 2:48 p.m. EDT, the stock was up 11.3%.
So what: The maker of optical components used in high-tech applications posted adjusted earnings of $0.11 per share, up from a loss of $0.06 per share in the quarter a year ago and better than expectations of a $0.06 profit. On the top line, revenue jumped 52.3% to $125.2 million, topping the consensus at $120 million.
CEO Greg Dougherty noted that the quarter marked an all-time record in gross margin and operating income, and said growth was driven by the strength of the 100G product line, whose revenue grew 36% sequentially.
Now what: The accelerating growth is certainly a good sign for investors. For the current quarter, the company expects that momentum to continue, with a revenue forecast of $126 million to $134 million, well ahead of Wall Street's view of $117.4 million.
Oclaro and its peers got a boost a week ago when Needham & Co. analysts upgraded the group of stocks to strong buy, calling for a megacycle in optical technology. The acceleration in the 100G line could be the latest indication that such a growth spurt is beginning. Improving gross margins and substantial profit growth are also bullish signs for the company as it moves into a new fiscal year. If the 100G line continues to deliver results, shares should move higher from here.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.