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Why NeoPhotonics Stock Skyrocketed Today

By Steve Symington - Aug 6, 2019 at 3:44PM

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A massive quarterly beat and strong guidance drove shares of the optoelectronics leader higher.

What happened

Shares of NeoPhotonics (NPTN 0.71%) were up 32.4% as of 3:05 p.m. EDT Tuesday after the integrated-optoelectronic device specialist announced far-better-than-expected second-quarter 2019 earnings.

More specifically, NeoPhotonics' quarterly revenue grew 1% year over year to $81.7 million, well above estimates for a 4.6% decline. That translated to an adjusted net loss of $0.03 per share, narrowed from a $0.19-per-share loss a year earlier, and also far above expectations for a $0.09-per-share loss.

Stock market data and charts indicating steep gains.


So what

NeoPhotonics' high-speed products were the primary source of its relative strength, representing 89% of total revenue in the quarter. The company also saw adjusted EBITDA improve to $6.8 million, swinging from an adjusted EBITDA loss of $0.8 million in last year's second quarter.

"Market drivers are well aligned with our advanced technologies and high-speed capabilities," elaborated NeoPhotonics chairman and CEO Tim Jenks. "These trends transcend the current Huawei ban and, coupled with the continued demand with hyperscale data centers, we are optimistic about NeoPhotonics' new product prospects."

Now what

For the third quarter of 2019, NeoPhotonics expects revenue of $87 million to $93 million, with adjusted net income ranging from negative $0.03 per share to $0.07 per share. Here again, even the low end of both ranges stood well ahead of analysts' consensus estimates for an adjusted net loss of $0.11 per share on revenue of roughly $66 million.

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NeoPhotonics Corporation Stock Quote
NeoPhotonics Corporation
$15.52 (0.71%) $0.11

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