Shares of high bandwidth optical connectivity company Oclaro (OCLR) jumped as much as 15.4% on Wednesday after the company reported better-than-expected first-quarter results for fiscal 2017. The stock's gains, however, have pulled back slightly. Oclaro stock is up about 6.3% at the time of this writing.
Oclaro stock's jump on Wednesday can likely be attributed to both the company's better-than-expected quarterly results and a price-target increase from Piper Jaffray.
For its first quarter, Oclaro reported revenue and adjusted EPS of $135.5 million and $0.14, respectively. Analysts, on average, were expecting revenue and adjusted EPS of $131.7 million and $0.10, respectively. These results compare to revenue and adjusted EPS of $125.2 million and $0.11 in the year-ago quarter.
"These results were driven by our 100G and beyond portfolio, where sales grew by approximately 20 percent for the fifth consecutive quarter," said Oclaro CEO Greg Dougherty in the company's first-quarter earnings release.
In response to Olcaro's results, Piper Jaffray boosted its price target for the stock from $9.50 to $13.
Going forward, Oclaro remains optimistic about demand for its products, noting it expects demand to remain strong throughout fiscal 2017, particularly in its China and Metro markets.
Oclaro's guidance for second-quarter revenue in the range of $146 million to $154 million was also higher than analysts' consensus forecast for $138 million.