Please ensure Javascript is enabled for purposes of website accessibility

Why NeoPhotonics Stock Jumped Today

By Chris Neiger – Aug 4, 2021 at 3:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were pleased with the company's latest quarterly results.

What happened

Shares of NeoPhotonics (NPTN) popped after the company reported its second-quarter 2021 results, which beat analysts' consensus revenue and earnings estimates.

The tech stock gained as much as 16.5% today and was up by 7.4% as of 2:55 p.m. EDT. 

So what 

NeoPhotonics' second-quarter revenue increased 37% year over year to $65 million. That figure easily topped Wall Street's consensus estimate of $62.3 million. Additionally, its adjusted net loss of $0.22 per share just barely beat analysts' consensus estimate of a loss of $0.23 per share.

A white line graph on a blue background.

Image source: Getty Images.

The company's solid performance in the second quarter encouraged some investors to snatch up shares of NeoPhotonics, pushing the stock price higher. 

And investors were also likely glad to hear that management foresees more growth ahead. CEO Tim Jenks said in a press release that the company expects "accelerating growth in the back half of the year."  

Now what 

Even with today's share-price jump, NeoPhotonics' stock is down about 4% over the past 12 months. The company's share price has been especially volatile since the beginning of this year. 

Investors may want to be cautious when considering buying shares of NeoPhotonics, as it appears that the tech stock can make wild swings in either direction.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NeoPhotonics Stock Quote
NeoPhotonics
NPTN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.