What: Shares of Finisar Corporation (NASDAQ:FNSR) were up 22.4% as of 11:30 a.m. Friday after the optical communication components specialist announced better-than-expected fiscal second-quarter 2016 results.

So what: Quarterly revenue climbed 8.1% year over year to $321.1 million, driven primarily by growth in 100 gigabit Ethernet tranceivers, 10 gigabit tunable tranceivers, and wavelength selective switches for telecom WDM applications. That translated to GAAP net income of $6.6 million, or $0.06 per share, compared to an $0.11-per-share loss in the same year-ago period. On an adjusted basis, which adds perspective by excluding things like stock-based compensation, Finisar's net income was $26.9 million, or $0.25 per diluted share, up from $0.23 per diluted share in last year's fiscal second quarter.

Analysts, on average, were only expecting adjusted earnings of $0.23 per share on revenue of $313.9 million.

Now what: For the current quarter, Finisar expects revenue of $300 million to $320 million, and adjusted earnings per diluted share of $0.19 to $0.25. Curiously, the midpoints of both ranges fell below analysts' consensus estimates, which called for revenue of $318.6 million, and earnings of $0.24 per share.

But with shares of Finisar still down 27% year to date -- and keeping in mind Finisar's fiscal Q2 top- and bottom-line results both came in at the high ends of its own guidance -- it's apparent the market is more than pleased with its relative outperformance this quarter. Personally given its modest growth rates for now, I'm content watching Finisar's progress from the sidelines. But if its latest guidance indeed proves conservative, I won't be the least bit surprised if shares continue to rise from here.

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