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Finisar (FNSR) Q1 Earnings Match Estimates, Revenues Miss
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Finisar Corporation reported mixed results for first-quarter fiscal 2020 (ended Jul 28, 2019) as revenues decreased year over year but net loss narrowed.
Net Loss
On a GAAP basis, net loss for the quarter was $8.7 million or loss of 7 cents per share compared with net loss of $18.5 million or loss of 16 cents per share in the year-ago quarter. The year-over-year improvement was primarily attributable to lower cost of sales.
Excluding non-recurring items, non-GAAP net income for the reported quarter jumped to $27.6 million or 23 cents per share from $21.3 million or 18 cents per share in the year-earlier quarter. Non-GAAP earnings were in line with the Zacks Consensus Estimate.
Finisar Corporation Price, Consensus and EPS Surprise
Quarterly revenues decreased to $285 million from $317.3 million in the prior-year quarter owing to challenging macroeconomic environment. The top line also lagged the consensus estimate of $310 million. While revenues for datacom applications were down due to lower demand and soft sales of fiber channel transceivers, the same for telecom applications declined due to lower sales of wavelength selective switches.
Other Quarterly Details
Cost of revenues was $197.6 million compared with $236.2 million in the year-ago quarter. Gross profit rose to $85.3 million from $80.7 million, resulting in respective gross margins of 29.9% and 25.4%.
Total operating expenses declined to $94.8 million from $96.4 million owing to lower R&D costs, partially offset by higher startup costs. Finisar reported operating loss of $9.5 million compared with loss of $15.7 million in the prior-year quarter.
Liquidity
As of Jul 28, 2019, Finisar had $882.3 million in cash and equivalents with $516.7 million of long-term liabilities in the form of convertible notes.
The company did not provide guidance for the second quarter of fiscal 2020 due to its previously announced proposed acquisition by II-VI Incorporated .
Nokia beat earnings estimates thrice in the trailing four quarters, the average being 89.3%.
Viasat beat earnings estimates in each of the trailing four quarters, the average positive surprise being 230.6%.
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Finisar (FNSR) Q1 Earnings Match Estimates, Revenues Miss
Finisar Corporation reported mixed results for first-quarter fiscal 2020 (ended Jul 28, 2019) as revenues decreased year over year but net loss narrowed.
Net Loss
On a GAAP basis, net loss for the quarter was $8.7 million or loss of 7 cents per share compared with net loss of $18.5 million or loss of 16 cents per share in the year-ago quarter. The year-over-year improvement was primarily attributable to lower cost of sales.
Excluding non-recurring items, non-GAAP net income for the reported quarter jumped to $27.6 million or 23 cents per share from $21.3 million or 18 cents per share in the year-earlier quarter. Non-GAAP earnings were in line with the Zacks Consensus Estimate.
Finisar Corporation Price, Consensus and EPS Surprise
Finisar Corporation price-consensus-eps-surprise-chart | Finisar Corporation Quote
Revenues
Quarterly revenues decreased to $285 million from $317.3 million in the prior-year quarter owing to challenging macroeconomic environment. The top line also lagged the consensus estimate of $310 million. While revenues for datacom applications were down due to lower demand and soft sales of fiber channel transceivers, the same for telecom applications declined due to lower sales of wavelength selective switches.
Other Quarterly Details
Cost of revenues was $197.6 million compared with $236.2 million in the year-ago quarter. Gross profit rose to $85.3 million from $80.7 million, resulting in respective gross margins of 29.9% and 25.4%.
Total operating expenses declined to $94.8 million from $96.4 million owing to lower R&D costs, partially offset by higher startup costs. Finisar reported operating loss of $9.5 million compared with loss of $15.7 million in the prior-year quarter.
Liquidity
As of Jul 28, 2019, Finisar had $882.3 million in cash and equivalents with $516.7 million of long-term liabilities in the form of convertible notes.
The company did not provide guidance for the second 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 couple of better-ranked stocks in the broader industry are Nokia Corporation (NOK - Free Report) and Viasat Inc. (VSAT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia beat earnings estimates thrice in the trailing four quarters, the average being 89.3%.
Viasat beat earnings estimates in each of the trailing four quarters, the average positive surprise being 230.6%.
It’s Illegal in 42 States, But Investors Will Make Billions Legally
In addition to the companies you read about above, today you get details on the newly-legalized industry that’s tapping into a “habit” that Americans spend an estimated $150 billion on every year.
That’s twice as much as they spend on marijuana, legally or otherwise.
Zacks special report revealing how investors can profit from this new opportunity. As more states legalize this activity, the industry could expand by as much as 15X. Zacks’ has just released a Special Report revealing 5 top stocks to watch in this space.
See these 5 “sin stocks” now>>