Finisar, the optical component maker, shares got whacked this past Friday after it reported earnings and provided guidance the prior day that came in below Street expectations.
Finisar reported FQ3 earnings of $0.59 per share versus Street consensus of $0.62 per share.
For the current quarter (FQ4;17), the company said earnings would range between $0.50-$0.56 per share on revenues between $360 million and $380 million. Street consensus going into earnings was $0.58 per share on revenues of $393 million.
Finisar attributed the miss and lowered guidance to weak sales of its optical receivers that were adversely affected by compatibility issues with its 100G receivers combined with the usual annual pricing reductions demanded by carriers and typical seasonality associated with the Chinese New Year.
Shares of Finisar closed down 23% to $26.98 per share in trading this past Friday on 31.1 million shares versus its three-month average trading volume of 3.29 million shares.
The sellside remained bullish on shares of Finisar and other optical component makers stating that the issues with Finisar were company specific and not systemic to the entire optical component space.
The 100G upgrade cycle remains in its nascent stage and overall global demand should exceed supply within the next few months according to one sellside firm.
Forbes |
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