What: Shares of fiber-optic equipment maker Finisar (Nasdaq: FNSR) climbed 10% today after its quarterly results and guidance topped Wall Street estimates.

So what: Finisar's quarterly earnings fell 48% on narrower margins and soft demand from Chinese customers, but the stock's been beaten so badly -- about 50% over the past six months -- that expectations were already very low to start with. Peer Oclaro (Nasdaq: OCLR) is also up a double-digit percentage today, suggesting that investors are finally starting to see a bottom in the space.

Now what: Expect the momentum to continue in the short term. Management now sees second-quarter earnings of $0.20-$0.24 per share on a top-line of $235 million to $250 million, while analysts were expecting a per-share profit of $0.20 on revenue of $237 million. With the stock still trading at a forward P/E under 15, Finisar seems like a reasonable turnaround bet that actually looks like it's turning.  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.