Finisar Shares Popped: What You Need to Know


What: Shares of fiber-optic equipment maker Finisar (NAS: 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 (NAS: 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.  

Interested in more info onFinisar?Add it to your watchlist.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.