Finisar Corp. (FNSR), the fiber optic equipment maker, Wednesday posted a lower fourth-quarter profit, hurt by restructuring and other expenses, even as revenues improved. Nonetheless, earnings for the quarter came in ahead of Wall Street estimates.
The company detailed a robust outlook for the first quarter, sending its share up 9 percent in after-hours trade on the Nasdaq.
The Sunnyvale, California-based company posted quarterly net earnings of about $4 million or $0.04 per share, compared with $18 million or $0.19 per share last year.
Excluding items, adjusted earnings for the quarter were about $20 million or $0.20 per share.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew to $243.4 million from $240 million a year ago. Analysts had a consensus revenue estimate of $242.60 million for the quarter.
While gross margin for the quarter improved 40 basis points to 27.7 percent, operating expenses increased by about $18 million, and includes impairment charges of $7.6 million.
Finisar's profit for the quarter is attributed to an income tax benefit of $1.5 million and earnings to non-controlling interest of $2.5 million.
For the first quarter, Finisar expects adjusted earnings of $0.22 to $0.26 per share and revenues of $245 million to $260 million, while analysts currently expect earnings of $0.20 per share on revenues of $248.94 million.
Finisar completed the divestment of two non-strategic subsidiaries of Ignis AS, which it acquired in May 2012. The divested businesses accounted for about $5 million in revenues during the fourth quarter.
Finisar closed Wednesday at $12.57, up 2.53%, on a volume of 1.3 million shares on the Nasdaq. In after hours, the stock gained $1.31 or 9.02%.
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