Finisar Corp. (FNSR) is set to report its earnings for the second quarter on Monday before the market open. The company’s results will be hurt by higher costs and expenses as well as iPhone orders cut and margin headwinds. The demand for wavelength selective switches could be weak and impacting the company’s results.
Analysts, on average, expect the company to post earnings of $0.22 per share on revenue of $326.59 million for the second quarter. In comparison, during the previous year quarter, the company reported a profit of $0.23 per share on revenue of $332.2 million. Majority of the analysts recommended a “strong buy” or “buy” rating on the stock with an average price target of $23.13.
The company’s top line will be hurt by the weaker demand for its wavelength selective switches. The favorable product mix is likely to benefit the results but higher costs and expenses could hurt the bottom line for the second quarter.
As being a provider of optical communications components and subsystems to Apple (AAPL), Finisar is likely to experience a shortfall in the second quarter after Lumentum cut its guidance on weaker orders from a large customer. In addition, analysts warned of soft iPhone sales as well as order cuts and margin headwinds. This could hurt Finisar for this quarter.
Apple stock selloff after production cut shows iPhone buzz is fading
Due to the proposed acquisition of Finisar by II-VI Inc. (IIVI), the company has decided not to hold an earnings call for the second quarter nor provide the outlook for the third quarter. The company has a history of posting earnings below analysts’ expectations in the three of the past four quarters.
For the first quarter, Finisar posted a loss of $18.5 million or $0.16 per share compared to a profit of $19.9 million or $0.17 per share a year ago. Revenues dropped 7% to $317.34 million as it experienced lesser demand for its wavelength selective switches.
For the second quarter, the company had expected revenues in the range of $315 million to $335 million and adjusted earnings in the range of $0.19 to $0.25 per share. Adjusted gross margin is predicted to be about 28% and the adjusted operating margin is projected to be about 7% to 8%.
Shares of Finisar opened lower on Friday and is trading in the red territory in the early trade. The stock has risen over 12% in the year so far and over 17% in the past year.
Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.
Most Popular
Infographic: How Alaska Air Group (ALK) performed in Q1 2024
Alaska Air Group (NYSE: ALK) reported its first quarter 2024 earnings results today. Total operating revenue increased 2% year-over-year to $2.23 billion. Net loss amounted to $132 million, or $1.05 per
KMI Earnings: Kinder Morgan Q1 2024 adjusted profit increases; revenue drops
Kinder Morgan, Inc. (NYSE: KMI) reported higher adjusted earnings for the first quarter of 2024 despite a decrease in revenues. The energy infrastructure company also issued guidance for the full
What to expect when Altria (MO) reports first quarter 2024 earnings results
Shares of Altria Group, Inc. (NYSE: MO) stayed green on Wednesday. The stock has dropped 8% over the past one month. The tobacco giant is scheduled to report its first
Comments