Telecommunications equipment make Finisar Corp. (FNSR), Thursday reported a drop in profit for the fourth quarter, as a growth in revenues were offset by weak margins and higher operating costs. Earnings for the quarter came in line with Wall Street estimates, while revenue fell shy of expectations.
Sunnyvale, California-based Finisar's fourth-quarter profit dropped to $7.3 million or $0.07 per share from $28.8 million or $0.28 per share last year.
Excluding one-time items, adjusted earnings for the quarter declined to $26.9 million or $0.25 per share from $37.5 million or $0.36 per share last year. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter rose to $320.04 million from $306.03 million a year ago. Analysts had a consensus revenue estimate of $320.50 million for the fourth quarter.
Gross margins for the quarter dropped to 27.9 percent from 31.6 percent last year, while total operating expenses increased to $78.9 million from $75.5 million a year ago.
Looking forward to the first quarter, the company expects adjusted earnings of $0.23 to $0.29 per share on revenues of $308 million to $328 million. Analysts currently expect earnings of $0.27 per share on revenue of $318.04 million for the first quarter.
FNSR closed Thursday's trading at $22.15, up $0.38 or 1.75%, on the Nasdaq. The stock further gained $0.33 or 1.49% in the after-hours trade.
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