Earnings Preview: Finisar Corporation

| About: Finisar Corporation (FNSR)

Company Profile

Finisar Corporation designs, develops, manufactures, and markets optical subsystems, components, and network performance test systems for high-speed data communications in the United States, Malaysia, and the People's Republic of China, and internationally.

Finisar Corporation (NASDAQ:FNSR) is scheduled to report its fourth quarter earnings results on June 11, 2012, after market close.

Technical Overview

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Finisar has a market cap of $1.34 billion and it is currently trading around $14.65 with a 52 week range of $12.26 to $23.50. The stock has -12.54% price performance for the year 2012. The following table provides the key financial ratios for Finisar :

Key Ratio Value
Current Ratio 4.26
PEG 2.55
P/E 30.59
Forward P/E 11.22
Profit Margin 4.43%
Return On Assets (ROA) 4.63%
Return On Equity (ROE) 5.98%

Recent News


  • On March 6,2012, Finisar demonstrated the optical backplane technology using Finisar board-mounted optics, a 28 Gb/s VCSEL (vertical cavity surface emitting laser) for 32G Fibre Channel applications, and a GPON Stick providing complete GPON ONT functionality in a compact SFP package.
  • On Mar 06, 2012, Finisar announced two new 100G modules - a 100G Coherent OIF Transponder and a 100G DWDM CFP with SpectraWave, an all-optical DWDM transport platform. Finisar displayed these new modules at OFC/NFOEC in Finisar's booth #1703 at the Los Angeles Convention Center, March 6-8, 2012.

Here's a list of recent changes to analyst ratings:


  • On May 30, 2012, Piper Jaffray reported that they expect Light Q1 Guidance from Finisar and hence reduced the estimates and price target to $19.00.
  • On April 11, 2012, Raymond James initiated coverage on Finisar with an OUTPERFORM.
  • On March 28, 2012, MKM Partners initiated coverage on Finisar with a BUY rating and set the price target to $18.00.
  • On March 1, 2012, Jefferies reduced the Finisar estimates and its price target from $22.00 to $18.00 following roughly in-line Q3.

Analyst Guidance and Earnings History

The fourth quarter revenues are expected to be $242.62 million when compared to $236.95 million for the same quarter last year. Earnings per share for the fourth quarter are expected to be 21 cents a share, down from 33 cents a share in the year-ago period.

The average price target from analyst for Finisar is $21.57 with average rating is OVERWEIGHT

Out of the last 4 quarters, Finisar has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in FNSR over the next 72 hours.

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Tagged: , Networking & Communication Devices, Earnings
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