Finisar Corporation’s fourth-quarter fiscal 2019 (ended Apr 28, 2019) revenues remained almost flat year over year but net loss narrowed. The bottom-line performance was largely driven by lower cost of sales.
Net Loss
On a GAAP basis, net loss for the quarter was $14.2 million or loss of 12 cents per share compared with net loss of $18.3 million or loss of 16 cents per share in the year-ago quarter. The year-over-year improvement was mainly driven by lower cost of sales.
For fiscal 2019, net loss was $53.2 million or loss of 45 cents per share compared with net loss of $48.3 million or loss of 42 cents per share in fiscal 2018.
Non-GAAP net income for the reported quarter came in at $33 million or 27 cents per share, beating the Zacks Consensus Estimate by a penny.
Finisar Corporation Price, Consensus and EPS Surprise
Revenues
Quarterly revenues remained almost flat year over year at $310.1 million. The top line lagged the consensus estimate of $328 million. For fiscal 2019, revenues decreased 2.7% year over year to $1,280.5 million.
Other Quarterly Details
Cost of revenues was $218.5 million compared with $246.5 million in the year-ago quarter. Gross profit was $87.3 million compared with $62.6 million in the year-earlier quarter. Gross margin was 28.2% compared with 20.2% in the year-ago quarter.
Total operating expenses increased to $98.6 million from $89.3 million, primarily due to higher startup costs. Finisar reported operating loss of $11.3 million compared with loss of $26.7 million in the prior-year quarter.
Liquidity
As of Apr 28, 2019, Finisar had $814.2 million in cash and equivalents with $512.1 million of convertible notes (long-term liabilities).
The company did not provide guidance for the first quarter of fiscal 2020 due to its previously announced proposed acquisition by II-VI Incorporated .
Zacks Rank & Stocks to Consider
Finisar currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Ciena Corp. (CIEN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Ubiquiti Networks, Inc. , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ciena has long-term earnings growth expectation of 17.3%.
Ubiquiti has long-term earnings growth expectation of19.8%.
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Finisar Corporation’s fourth-quarter fiscal 2019 (ended Apr 28, 2019) revenues remained almost flat year over year but net loss narrowed. The bottom-line performance was largely driven by lower cost of sales.
Net Loss
On a GAAP basis, net loss for the quarter was $14.2 million or loss of 12 cents per share compared with net loss of $18.3 million or loss of 16 cents per share in the year-ago quarter. The year-over-year improvement was mainly driven by lower cost of sales.
For fiscal 2019, net loss was $53.2 million or loss of 45 cents per share compared with net loss of $48.3 million or loss of 42 cents per share in fiscal 2018.
Non-GAAP net income for the reported quarter came in at $33 million or 27 cents per share, beating the Zacks Consensus Estimate by a penny.
Finisar Corporation Price, Consensus and EPS Surprise
Revenues
Quarterly revenues remained almost flat year over year at $310.1 million. The top line lagged the consensus estimate of $328 million. For fiscal 2019, revenues decreased 2.7% year over year to $1,280.5 million.
Other Quarterly Details
Cost of revenues was $218.5 million compared with $246.5 million in the year-ago quarter. Gross profit was $87.3 million compared with $62.6 million in the year-earlier quarter. Gross margin was 28.2% compared with 20.2% in the year-ago quarter.
Total operating expenses increased to $98.6 million from $89.3 million, primarily due to higher startup costs. Finisar reported operating loss of $11.3 million compared with loss of $26.7 million in the prior-year quarter.
Liquidity
As of Apr 28, 2019, Finisar had $814.2 million in cash and equivalents with $512.1 million of convertible notes (long-term liabilities).
The company did not provide guidance for the first quarter of fiscal 2020 due to its previously announced proposed acquisition by II-VI Incorporated .
Zacks Rank & Stocks to Consider
Finisar currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Ciena Corp. (CIEN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Ubiquiti Networks, Inc. , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ciena has long-term earnings growth expectation of 17.3%.
Ubiquiti has long-term earnings growth expectation of19.8%.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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