Finisar Corporation | $FNSR Stock | Shares Spike Up On Better Than Expected Earnings & Revenue Numbers


Finisar Corporation (NASDAQ: FNSR)



Finisar Corporation (FNSR), a global optical subsystems and components for data communication and telecommunication applications company yesterday reported their first quarter fiscal year 2017 financial results. Finisar reported first quarter earnings of $0.38 per share which beat analyst expectations of $0.30 per share. Finisar reported first quarter revenues increased 7.1% year over year to $341.3 million which beat analyst expectations of $332.75 million.


Finisar Corporation CEO’s Comments

“I am pleased to announce that Finisar achieved record revenues for our first quarter of $341.3 million, an increase of $22.5 million, or 7.1% compared to the prior quarter. This growth was primarily driven by strong demand for 100Gb/s transceivers in CFP, CFP2, CFP4, and QSFP28 form factors. In addition, demand for wavelength selective switches was strong. Our gross margins improved significantly due to favorable product mix and leverage of our vertically integrated manufacturing infrastructure over the larger volume. The combination of revenues being at the higher end of our guidance range and better than expected gross margins resulted in earnings per fully diluted share exceeding the upper end of our guidance range,” said Jerry Rawls, Finisar’s Chief Executive Officer.  Market Wired


FNSR Technical Analysis


FNSR opened trading yesterday at $23.55 which was down from the previous days trading of $23.65. FNSR closed trading yesterday at $23.23 and spiked up after market to $26.45, equivalent to a 14% increase from the closing price. Taking a look at the daily chart we can see the last time FNSR traded above these levels we have to go back to the week of April 21st, 2014 when it traded at $27.57. Taking a closer look at the daily chart we can see that  FNSR has been in an overall upward trend dating back to May 19th when it traded at $15.32. FNSR has a float of 106.35 million shares and traded 3.10 times the normal daily trading volume on Thursday. For trading purposes, I would like to see FNSR open trading on Friday above $25.40 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.40 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally. Its optical subsystems primarily consist of transmitters, receivers, transceivers, transponders, and active optical cables that provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in communication networks, including the switches, routers, and servers used in wireline networks, as well as the antennas and base stations used in wireless networks. The company also offers wavelength selective switches, which are used to switch network traffic from one optical fiber to multiple other fibers without converting to an electronic signal. In addition, it provides optical components comprising packaged lasers, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. Finisar Corporation markets its products through its direct sales force, as well as through a network of distributors and manufacturers’ representatives to the original equipment manufacturers of storage systems, networking equipment, and telecommunication equipment, as well as to their contract manufacturers. Finisar Corporation was founded in 1987 and is headquartered in Sunnyvale, California.  Yahoo Finance