The 10-second takeaway
For the quarter ended Oct. 28 (Q2), Finisar met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to zero.
Margins shrank across the board.
Finisar logged revenue of $232.0 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $231.8 million on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $241.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.06.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.4%, 140 basis points worse than the prior-year quarter. Operating margin was 0.0%, 370 basis points worse than the prior-year quarter. Net margin was 0.1%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $239.5 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $934.7 million. The average EPS estimate is $0.60.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 440 members out of 483 rating the stock outperform, and 43 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Finisar a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Finisar is outperform, with an average price target of $16.17.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Finisar fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Finisar to My Watchlist.