Shares of NeoPhotonics (NPTN) tumbled today after the company released its fourth-quarter results. Despite beating Wall Street's consensus earnings and revenue estimates, the company's stock fell.
The tech stock dropped by as much as 19.4% today and was down 15.8% as of 3:09 p.m. EST.
NeoPhotonics reported a non-GAAP loss per share of $0.14 in Q4, which was better than analysts' consensus estimate of a loss of $0.17 per share. The company also beat the Street's expectation of $67.3 million in revenue and instead reported sales of $68.2 million.
NeoPhotonics CEO Tim Jenks said in a press release that "2020 was a strong and dynamic year for NeoPhotonics" and that the company experienced "accelerating market adoption and deployment" of some of its technologies.
But not all investors were impressed with the quarter. While it's not exactly clear why investors sold their shares after the earnings report, it's possible that some investors were cashing out the stock's big gains over the past year. Before today's drop, NeoPhotonics was up 85% over the past 12 months.
Additionally, some investors may not have been happy with the company's first-quarter 2021 guidance.
NeoPhotonics' management issued Q1 guidance with revenue between $57 million to $62 million, a 40% year-over-year decline at the midpoint, and a non-GAAP loss per share between $0.20 and $0.10.