Finisar Increases Sales but Misses Revenue Estimate
Finisar (NAS: FNSR) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q4), Finisar missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Finisar notched revenue of $239.9 million. The nine analysts polled by S&P Capital IQ expected a top line of $244 million on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $236.9 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 $0.21. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS of $0.14 for Q4 were 18% lower than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.9%, 420 basis points worse than the prior-year quarter. Operating margin was 5.0%, 650 basis points worse than the prior-year quarter. Net margin was 5.5%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $250.5 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 442 members rating the stock outperform and 43 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Finisar a green thumbs-up, and eight 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 $22.55.
The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will Finisar fit in? Who's going to lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Finisar to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.