What happened

Shares of NeoPhotonics (NYSE:NPTN) jumped as much as 19.9% higher on Friday, boosted by a strong third-quarter earnings report. The maker of optoelectronic components used in high-speed communication networks settled down to a slightly lower 18.5% gain by 12:50 p.m. EDT.

So what

NeoPhotonics saw third-quarter revenue of $92.4 million, 13% above the year-ago period's result and far ahead of Wall Street's $90 million consensus estimate. On the bottom line, adjusted earnings swung from a $0.05 loss per share to a profit of $0.11 per share. Here, your average analyst would have settled for earnings near $0.02 per share.

A bundle of fiber-optic cables lit up in white against a solid black backdrop.

Image source: Getty Images.

Now what

The company enjoyed rising order volumes from equipment builders in the data center and metro networking markets, including a groundswell in orders from Chinese customers. The Chinese upswing might surprise you, since NeoPhotonics is an American company and has to contend with irksome tariffs in order to reach both suppliers and clients in the Middle Kingdom. But this is a key supplier of components in a fiber-optic networking market on a global upswing, enabling NeoPhotonics to power through the tariff walls.

And the next couple of quarters should be even more productive, whether or not the Trump administration works out a tariff-blasting trade deal with China along the way.

"Looking forward, we believe that certain key customers in China and in the West have a desire to build additional inventory to deal with surges and/or to mitigate their perceived supply chain risks," CFO Elizabeth Eby said in the earnings call.

NeoPhotonics' stock has now bounced 140% above its 52-week lows.