[The Motley Fool] Finisar Corp (NASDAQ:FNSR)(TREND ANALYSIS) What: Shares of Finisar Corporation (NASDAQ:FNSR) were down 18.4% as of 11:30 a.m. Friday after the optic communications products specialist reported weaker-than-expected fiscal-first-quarter 2016 results.
So what: Adjusted quarterly revenue fell 1.9% year over year to $314 million, albeit primarily due to an extra week in the year-ago period. Finisar was quick to point out that adjusting for that extra time shows this year’s fiscal Q1 had higher average weekly revenue, driven primarily by strength in the company’s 40-gigabit transceivers for datacom applications. Nonetheless, analysts were still anticipating higher revenue of $318.7 million.
Meanwhile, Finisar’s adjusted net income declined 8.7% over the same period to $24.5 million, or $0.23 per diluted share. Analysts, on average, were modeling adjusted earnings of $0.26 per share.
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Finisar Corp (NASDAQ:FNSR) stock is currently trading 47.99% below its 52-week-high, 2.1% above its 52-week-low. The 1-year stock price history is in the range of $11.91 – $23.38. Finisar Corp (FNSR) has a price to earnings ratio of 1737.14 versus Technology sector average of 20.47. FNSR stock price has underperformed the Nasdaq by 39.8%. The Telecom & Fiber Optics company is currently valued at $1.27 billion and its share price closed the last trading session at $12.16. The stock has a 50-day moving average of $16.2 and a 200-day moving average of $19.66.
Finisar Corp (FNSR) current short interest stands at 8.04 million shares. It has decreased by 2% from the same period of last month. Around 8% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.29 million shares, the number of days required to cover the short positions stand at 3.6 days.
FNSR reported last quarter earnings on September 10. The Telecom & Fiber Optics company announced earnings per share of $0.12 against a consensus Street estimate of $0.15, missing estimate by $0.03. This corresponds to a decrease of $0.15 compared to the same quarter of the previous fiscal year.
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There are currently fifteen analysts that cover Finisar Corp stock. Of those fifteen, five have a Buy rating, ten have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $17.33.
A recent analyst activity consisted of Barclays reiterating their Overweight stance on September 11. Barclays decreased price target from $24 to $18. This corresponds to a 48.03% upside from the last closing price. On the date of report, the stock closed at $12.16.
B. Riley downgraded their Buy rating to Neutral on the same day. On the date of report, the stock closed at $12.16.
Another research firm was Needham who reiterated their Buy stance on September 11. Needham decreased price target from $25 to $18. This translates to a 48.03% upside from the last closing price. On the date of report, the stock closed at $12.16.
Company profile
Finisar Corporation provides fiber optic subsystems and network performance test systems which enable high-speed data communications over local area network and storage area networks. The Company’s line of optical subsystems supports a variety of network applications, transmission speeds, distances, and mediums. Finisar also provides network performance test systems.
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