Finisar Corporation (NASDAQ:FNSR) surged 21.99% to $14.20 on Friday after the company announced second quarter 2016 financial results on Thursday.
Finisar is a provider of optical subsystems and components that are used in telecommunication applications and data communication. The Company's optical subsystems include transmitters, transponders, transceivers, receivers, active optical cables and optical engines that offer the basic optical electrical, interface, and optoelectronic for interconnecting the electronic devices which used in communication networks.
According to the statement of Jerry Rawls, Finisar's Chief Executive Officer, "Revenues for our second fiscal quarter were $321.1 million compared to $314.0 million in the prior quarter; an increase of approximately 2.3%. This increase was primarily driven by growth in 100 gigabit Ethernet transceivers and 10 gigabit tunable transceivers and wavelength selective switches for telecom WDM applications," Moreover, net income was $6.644 million which increased 96% compare with last quarter. Diluted earnings per share increased 100% to $0.06 compared with last quarter.
After strong earnings report, Finisar outlooks the revenues for its third quarter to be range between $300 million to $320 million. The company also expects telecom revenues to increase again, and remain strong demand for their specific products.
Numerous brokerage firms have pay more attention on the stock now. Needham declined their target price on Finisar from $25.00 to $18.00 and suggest to buy. RBC Capital decreased Finisar from outperform to normal perform, the brokerage firm lowered their target price on Finisar from $21.00 to $17.00. B. Riley had suggested a buy rating and offered a $27.00 target price on Finisar.