$FNSR Stock Could See $45 in Next 6-9 Months




Finisar Corp. (FNSR) swung to a fiscal first-quarter profit as the telecommunication-equipment provider reported a double-digit jump in revenue and sharply higher gross margins.

Shares rose 1.8% to $23.24 in after-hours trading, as results exceeded the company's expectations and Finisar also issued a rosy outlook for the current quarter.

Looking ahead, the company sees current-quarter per-share earnings between 37 cents to 41 cents on revenue of $277 million to $292 million. Analysts surveyed by Thomson Reuters most recently expected 31 cents and $273 million, respectively.

Finisar, which makes fiber-optic equipment, had been suffering from weak demand from some telecom customers, putting pressure on its bottom line. But revenue in the latest quarter was sharply higher than a year ago, benefiting from increased sales of 10G, 40G and 100G Ethernet transceivers for datacom applications.

For the quarter ended July 28, Finisar reported a profit of $26 million, or 26 cents a share, compared with a prior-year loss of $6.2 million, or seven cents a share. Excluding stock-based compensation, inventory-related impacts and other items, adjusted earnings grew to 31 cents from 12 cents a share. Revenue rose 21% to $266.1 million.

The company in June projected a profit between 22 cents to 26 cents on revenue of $245 million to $260 million. Wall Street's latest targets were above Finisar's guidance.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

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