Finisar Corp Earnings: Profit Slides Again
Finisar Corporation (NASDAQ:FNSR) reported its results for the third quarter. Finisar is a provider of optical subsystems and components that connect short-distance local area networks, or LANs, and storage area networks, or SANs, and longer distance metropolitan area networks, or MANs and wide area networks, or WANs.
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Finisar Earnings Cheat Sheet for the Third Quarter
Results: Net income for Finisar Corporation fell to $8.9 million (9 cents per share) vs. $18.8 million (22 cents per share) a year earlier. This is a decline of 52.7% from the year-earlier quarter.
Revenue: Fell 7.6% to $243 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Finisar Corporation fell short of the mean analyst estimate of 17 cents per share. Analysts were expecting revenue of $244.2 million.
Quoting Management: “In our just completed fiscal third quarter, our revenues were $243.0 million, 0.6% greater than the preceding quarter. Sales of datacom products were strong. Gross margin was relatively unchanged from the preceding quarter, despite the impact of one month of the annual price reduction for telecom products. We held operating expenses below plan, so that operating income and operating margin increased relative to the preceding quarter,” said Jerry Rawls, Finisar’s executive Chairman of the Board.
A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 57.6%.
For three quarters in a row, the company’s net income has fallen. In the second quarter, net income fell 82.5% from the year earlier, while the figure fell 47% in the first quarter.
The company has fallen short of estimates for two consecutive quarters. In the second quarter, it missed expectations by one cent with net income of 17 cents versus a mean estimate of net income of 18 cents per share.
Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 24 cents per share to 20 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At 67 cents per share, the average estimate for the fiscal year has fallen from 74 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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