Why Is FNSR Stock Rising?
Finisar Corporation (NASDAQ:FNSR) rose another seven percent in after-hours trading, surpassing its day-trading gain of six percent as its Q2 reports beat analyst estimates and boosted FNSR stock.
Finisar, a company which provides fiber optic solutions for the fiber channel, gigabit ethernet, and CATV markets, was already having a great 2016 even before Thursday’s two big gains. FNSR stock is up 135% on the year, riding a five-plus-year high, with its current share price at $34.13.
“I am pleased to announce that Finisar achieved all-time quarterly records for revenues and profits in our second quarter,” said Jerry Rawls, Finisar’s Chief Executive Officer, in a release.
Rawls went to say that revenues saw an increase of $28.5 million, or 8.4% over the first quarter:
This growth was primarily driven by strong demand for 100G transceivers. In addition, customer demand for wavelength selective switch and ROADM line card products was strong. Our gross margins improved significantly due to a favorable product mix and leverage achieved from our vertical integration with larger volumes. The combination of revenues being at the higher end of our guidance range with higher gross margins resulted in earnings per fully diluted share above our guidance range.
Which is to say, it is looking well in the kingdom of FNSR stock. With fiber optics holding an important place in today’s digital economy, Finisar will be looking to keep these good times rolling into 2017.