It's certainly an interesting graph (mind you, it's self updating, price at writing is $29.22 after a mighty three months run-up from $17). The company, is Finisar (FNSR), it's in the network equipment business (basically stuff related to fiberoptic data networks). Why is it rallying so strongly? Well:
The company posted $0.38 in earnings per share (EPS) on $341.33 million in revenue. This compares to the consensus estimates from Thomson Reuters of $0.30 in EPS on revenue of $332.75 million. In the same period of the previous year, Finisar posted EPS of $0.23 and $314.0 million in revenue. In terms of the outlook for the second quarter, Finisar is calling for EPS in the range of $0.44 to $0.50 and revenues between $355 million and $375 million. The consensus estimates are $0.32 in EPS on $342.91 million in revenue for the quarter.
How Analysts View Finisar After Earnings (NASDAQ: FNSR) - 24/7 Wall St.
Beating estimates and guidance, with rising margins to boot.. What's not to like? Well, an RSI in the 80s for instance, and perhaps some valuation issues.
Looking at the longer-term chart..
Early in 2014 we were at these hights, perhaps after the heady buying the stock needs to digest the gains of the past two months a bit before moving higher.
What scares me about stocks like this is articles like from a couple days back talking about AT&T testing wireless 5G community WIFI nodes that sit on top of utility poles and use power wiring for antennae. I loved the gas in the ground idea. A lot more certain in its long term value than copper or fiber. (Or so I thought)
'ArtM72' pid='76539' datel Wrote:What scares me about stocks like this is articles like from a couple days back talking about AT&T testing wireless 5G community WIFI nodes that sit on top of utility poles and use power wiring for antennae. I loved the gas in the ground idea. A lot more certain in its long term value than copper or fiber. (Or so I thought)
The funny thing is, that's exactly what I thought, and combined with the heavily overbought chart I wondered whether there was a temporary short in this name. However, 5G isn't here yet, there isn't even an agreed standard, and I suppose we still need backbone fiberoptics networks.
There are several public companies involved in "last mile" fiber optics that are the can openers that let the 100 gigabit light speed shining across the globe into our neighborhoods. A lot of this is done with the simple prism effect. There is a super cycle in this can opener function coming as explained in the Investor's Business Daily article "Fiber Optic Super Cycle: Raising The Speed Limit On The Gigabahn's Last Mile."
Bruce Pile Blog | The Impending Super-Cycle In The All-Glass Optical Internet | Talkmarkets
Broadcom, Finisar among new internet winners, Barron's says Big telecom companies may be left out of "the cloud bloom," driven by Apple (AAPL), Alphabet (GOOG, GOOGL), Amazon (AMZN), Baidu (BIDU), Facebook (FB), and Microsoft (MSFT), Tiernan Ray writer's in this week's edition of Barron's. With these companies creating demand and spending to keep up with new streaming-video offering and artificial-intelligence computing cluster, the result is increasing spending that benefits chip makers such as Broadcom (AVGO), and fiberoptic suppliers Finisar (FNSR) and Lumentum (LITE), Barron's notes.
Broadcom, Finisar among new internet winners, Barron's says
Finisar upside drivers all coming in second half, says Craig-Hallum. Craig-Hallum analyst Richard Shannon said that despite Finisar's below consensus guidance for next quarter, the company's commentary with its Q4 report offered reasons for optimism in the second half of 2017 from a number of areas, including 3D sensing, 100G Datacom, ROADM line cards and Analog Coherent Optics. He sees a favorable risk/reward in the shares at current levels given expectations for accelerating sales growth and improving margins and keeps a Buy rating and $38 target on Finisar.
Breaking News: FNSR latest news. - The Fly
While Q1 results just published came inline, the disappointment is with Q2 guidance:
For Q2 it's guiding to revenues of $322M-$342M (short of consensus for $370.3M) and non-GAAP EPS of $0.27-$0.33 (light of consensus for $0.50). It's forecasting non-GAAP gross margin fo 33-34% and operating margin of 10-11%.
Finisar -6.6% as current-quarter guidance comes up light - Finisar Corporation (NASDAQ:FNSR) | Seeking Alpha
Here is what analysts expected:
A couple of Street observers today are offering their thoughts as far as tomorrow’s report. The consensus is for $341 million in revenue and 40 cents per share in net income. D.A. Davidson’s Mark Kelleher, who has a Buy on Finisar stock, and a $40 price target, is looking for results about in line to slightly lower, at $340 million and 38 cents per share. He really is focused on the outlook for Q2 and beyond, as he expects sales of parts for 3-D sensing for Apple (AAPL) and other OEMs should drive “strong Q2 guidance.” Kelleher points to comments from management back at the last earnings call, when they said that they “expect big revenues” for Q2. Likewise, Dave Kang at B. Riley, who’s got a Buy rating on the stock and a $38 price target, is looking for in-line results for the quarter, but for Q2 to show two “catalysts,” the one being 3-D sensing, the other being “analog coherent optics,” or “ACO”:
Finisar CEO Rawls To Retire: Could Kindle M&A, Says William Blair - Barron's