Weaker Revenue and Margins Leads Finisar (NASDAQ:FNSR) to Report 95% Drop

Finisar Corporation (NASDAQ:FNSR) reported on Thursday that earnings in the fiscal Q2 plunged 95% as the company announced weaker revenue and margins.

The telecommunication-equipment provider estimates earnings of 14 cents per share to 18 cents per share on revenue of $230 to $245 million during the present three months period. Thomson Reuters analysts survey most recently projected 17 cents per share on revenue of $239 million.

Finisar announced a profit of $271,000 for the three months period finished Oct 28, low from $5.9 million in previous year.

The company reported that adjusted earnings plunged at 15 cents from 23 cents without stock-based compensation, acquisition-related outlays and other items.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Oclaro, Inc. (NASDAQ:OCLR) fell -3.28% to settle at $1.77, Oplink Communications, Inc (NASDAQ:OPLK) moved down -0.71% to end at $115.43 while JDS Uniphase Corp (NASDAQ:JDSU) dropped -0.24% to finish at $12.34 on Thursday.

Finisar Corporation (NASDAQ:FNSR) last session’s volume of 7.05 million shares was surprisingly higher than its average volume of 2.39 million shares. The stock after opening at $14.00 hit high price of $14.06 and then closed at $14.03 by scoring +5.09%.

The liquidity measure in recent quarter results of the company was recorded 5.19 as current ratio and on the other side the debt to equity ratio was 0.05 and long-term debt to equity ratio remained at 0.05. The Company had total cash of $220.41 million at hand and a book value per share as $8.32in the most recent quarter.

The stock’s price volatility was 3.85% for a week and 4.30% for a month as well as price volatility’s Average True Range for 14 days was 0.55 and its beta remained at 2.81.

FNSR generated revenue of $944.88 million in the previous twelve months and earned $26.65 million. The Company showed a positive 2.83% in the net profit margin as well as in its operating margin which remained at 2.86%. Company’s annual sales growth for the past five years was 17.88%.

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