Finisar Profit Misses, Details Weak Q1 Outlook; Stock Plummets 14%

(RTTNews) - Telecommunications equipment maker Finisar Corp (FNSR), Thursday reported a surge in fourth-quarter profit, helped mainly by growth in both revenue and margins. However, quarterly earnings missed Wall Street estimates, while revenue surpassed expectations.

The company provided some weak adjusted earnings guidance for the current quarter even as its revenue expectations appear strong. The announcement dampened investor sentiment, dragging down Finisar shared by about 14 percent in after-hours trade on the Nasdaq.

Sunnyvale, California-based Finisar reported fourth-quarter net income of $28.4 million or $0.27 per share, up from $3.9 million or $0.04 per share last year.

Excluding items, adjusted earnings for the quarter were $0.36 per share, compared with $0.20 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.38 per share for the quarter.

Revenue for the fourth quarter grew 4 percent to $306 million from $243.4 million in the prior year. Analysts expected revenue of $303.2 million for the quarter.

Results were also aided by gross margin that expanded to 31.7 percent from 27.7 percent last year.

For the first quarter, Finisar expects adjusted earnings of $0.30 to $0.34 per share and revenue of $320 million to $335 million. Analysts currently expect earnings of $0.41 per share on revenue of $316.96 million for the quarter.

Finisar stock closed Thursday at $25.15, down $0.07 or 0.28%, on a volume of 2.2 million shares on the Nasdaq. In after hours, the stock dropped $3.57 or 14.19%, trading at $21.58. In the past year, the stock traded in the range of $13.54 - $28.85.