We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Finisar Corporation’s third-quarter fiscal 2019 (ended Jan 27, 2019) revenues decreased year over year but net loss narrowed. The bottom-line performance was largely driven by lower provision for income tax and reduction in manufacturing overhead.
Net Loss
On a GAAP basis, net loss for the reported quarter was $15.3 million or loss of 13 cents per share compared with net loss of $55.7 million or loss of 49 cents per share in the year-ago quarter. The year-over-year improvement was driven by higher operating income and lower provision for income tax.
Notably, non-GAAP net income came in at $34.2 million or 29 cents per share compared with $22.8 million or 20 cents per share in the prior-year quarter on the back of favorable adjustments. The bottom line beat the Zacks Consensus Estimate by 2 cents.
Finisar Corporation Price, Consensus and EPS Surprise
Quarterly revenues decreased 1.4% year over year to $327.6 million primarily due to decline in sales of 10G and Ethernet transceivers. The top line lagged the consensus estimate of $343 million.
Other Quarterly Details
Cost of revenues was $232.7 million compared with $243.7 million in the year-ago quarter. Gross profit was $94.4 million compared with $88.1 million in the year-ago quarter. Margin was 28.8% compared with 26.5% in the year-ago period. Higher margin could be attributed to favorable product mix and decrease in manufacturing costs. Total operating expenses decreased to $93.9 million from $94.2 million. Finisar reported operating income of $0.5 million against a loss of $6.1 million in the prior-year quarter, primarily due to higher gross profit and lower operating expenses.
Liquidity
As of Jan 27, 2019, Finisar had $906.9 million in cash and equivalents with $506.5 million of convertible debt (net of current portion).
The company did not provide guidance for the fourth quarter of fiscal 2019 due to its previously announced proposed acquisition by II-VI Incorporated .
Harris has a long-term earnings growth expectation of 8%.
Motorola has a long-term earnings growth expectation of 8%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Finisar's (FNSR) Q3 Earnings Beat, Revenues Decline Y/Y
Finisar Corporation’s third-quarter fiscal 2019 (ended Jan 27, 2019) revenues decreased year over year but net loss narrowed. The bottom-line performance was largely driven by lower provision for income tax and reduction in manufacturing overhead.
Net Loss
On a GAAP basis, net loss for the reported quarter was $15.3 million or loss of 13 cents per share compared with net loss of $55.7 million or loss of 49 cents per share in the year-ago quarter. The year-over-year improvement was driven by higher operating income and lower provision for income tax.
Notably, non-GAAP net income came in at $34.2 million or 29 cents per share compared with $22.8 million or 20 cents per share in the prior-year quarter on the back of favorable adjustments. The bottom line beat the Zacks Consensus Estimate by 2 cents.
Finisar Corporation Price, Consensus and EPS Surprise
Finisar Corporation Price, Consensus and EPS Surprise | Finisar Corporation Quote
Revenues
Quarterly revenues decreased 1.4% year over year to $327.6 million primarily due to decline in sales of 10G and Ethernet transceivers. The top line lagged the consensus estimate of $343 million.
Other Quarterly Details
Cost of revenues was $232.7 million compared with $243.7 million in the year-ago quarter. Gross profit was $94.4 million compared with $88.1 million in the year-ago quarter. Margin was 28.8% compared with 26.5% in the year-ago period. Higher margin could be attributed to favorable product mix and decrease in manufacturing costs. Total operating expenses decreased to $93.9 million from $94.2 million. Finisar reported operating income of $0.5 million against a loss of $6.1 million in the prior-year quarter, primarily due to higher gross profit and lower operating expenses.
Liquidity
As of Jan 27, 2019, Finisar had $906.9 million in cash and equivalents with $506.5 million of convertible debt (net of current portion).
The company did not provide guidance for the fourth quarter of fiscal 2019 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 Harris Corporation and Motorola Solutions, Inc. (MSI - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Harris has a long-term earnings growth expectation of 8%.
Motorola has a long-term earnings growth expectation of 8%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>