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Emcore (EMKR) Stock Jumps 16.5%: Will It Continue to Soar?
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Emcore (EMKR - Free Report) shares soared 16.5% in the last trading session to close at $7.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's no gain, no loss over the past four weeks.
The upswing came after EMCORE reported strong second-quarter fiscal 2021 results. The company’s fiscal second-quarter non-GAAP earnings of 17 cents per share improved 54.5% sequentially. Revenues grew to $38.4 million from the previous quarter’s $33.4 million.
The company’s quarterly results benefited from strong performance in its Broadband segment, driven chiefly by solid growth in CATV and Sensing product sales. Strength in gross and operating margins was another highlight of the quarter.
Additionally, EMCORE’s Aerospace & Defense growth initiatives are strengthening its navigation business, and is expected to drive further growth for the company.
Price and Consensus
This maker of components for communications gear and solar panels is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +533.3%. Revenues are expected to be $36 million, up 32% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Emcore, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EMKR going forward to see if this recent jump can turn into more strength down the road.
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Emcore (EMKR) Stock Jumps 16.5%: Will It Continue to Soar?
Emcore (EMKR - Free Report) shares soared 16.5% in the last trading session to close at $7.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's no gain, no loss over the past four weeks.
The upswing came after EMCORE reported strong second-quarter fiscal 2021 results. The company’s fiscal second-quarter non-GAAP earnings of 17 cents per share improved 54.5% sequentially. Revenues grew to $38.4 million from the previous quarter’s $33.4 million.
The company’s quarterly results benefited from strong performance in its Broadband segment, driven chiefly by solid growth in CATV and Sensing product sales. Strength in gross and operating margins was another highlight of the quarter.
Additionally, EMCORE’s Aerospace & Defense growth initiatives are strengthening its navigation business, and is expected to drive further growth for the company.
Price and Consensus
This maker of components for communications gear and solar panels is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +533.3%. Revenues are expected to be $36 million, up 32% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Emcore, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EMKR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>