Technology
Why Analysts Became More Bullish on Finisar
Published:
Last Updated:
Finisar Corp. (NASDAQ: FNSR) reported its fiscal fourth-quarter financial results after the markets closed on Thursday. Overall the results were positive and the company beat the street forecasts. As a result a few analysts poured into the stock, generally raising their price targets.
24/7 Wall St. has included some highlights from the earnings report, as well as a montage of what analysts said about the stock after the fact.
The company reported that it had $0.29 in earnings per share (EPS) on $318.8 million in revenue. The consensus estimates had called for $0.25 in EPS on revenue of $317.6 million.
Sales of products for datacom applications increased by $23.6 million, or 10.8%, compared to the preceding quarter, primarily driven by growth in demand for 40G and 100G transceivers.
Sales of products for telecom applications decreased by 15.6% or $14.1 million, compared to the preceding quarter, primarily as the result of the full three months of the telecom price negotiations and an unexpected decline in demand for legacy products including 10G fixed wavelength and tunable transceivers and amplifiers.
On the books, Finisar’s cash, cash equivalents and short-term investments totaled $562.5 million at the end of the quarter, compared to $531.1 million at the end of the preceding quarter.
A few analysts weighed in on the stock after the report was released:
- B. Riley has a Buy rating and raised its price target to $24.50 from $20.
- Barclays raised its price target to $20 from $17.
- Craig Hallum has a Buy rating and raised its price target from $19.50 to $24.
- Goldman Sachs has a Neutral rating and raised its price target to $20 from $18.
- Jefferies has a Hold rating and raised its price target to $19 from $18.
- MKM has a Neutral rating and raised its price target from $19 to $21.
- Needham has a Buy rating and raised its price target to $24 from $22.
- Piper Jaffray raised its price target to $24 from $20.
- Raymond James raised its price target from $20 to $22.
Shares of Finisar closed Friday at $18.85, with a consensus analyst price target of $18.95 and a 52-week trading range of $10.66 to $21.64.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
