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Stock Market & Financial Investment News

News Breaks
June 13, 2014
11:31 EDTOCLR, JNPR, OPLK, CIEN, FNSRFinisar plummets after profit, gross margin outlook trail estimates
Shares of Finisar (FNSR), which provides optical subsystems and components for telecommunication applications, are sinking after the company’s first quarter profit and gross margin outlook trailed analysts’ consensus estimates. WHAT'S NEW: Last night, Finisar reported fourth quarter earnings per share of 36c and revenue of $306M, compared to the consensus views of 38c and $303.2M, respectively. The company said Q4 adjusted gross margins decreased to 34.2% from 37.2%. Finisar attributed the decline in Q4 adjusted gross margin primarily to the impact of the full three months of the annual price reductions for telecom products, as well as the impact of the u2t acquisition whose products carry a lower gross margin than the corporate average. WHAT’S NOTABLE: Finisar forecast Q1 EPS of 30c-34c, far short of the consensus of 41c. Q1 revenue was seen at $320M-$335M, versus consensus of $316.96M. The company expects its gross margin issue to last beyond the current quarter. It attributes the reduction in gross margin to the product mix with lower margin wireless products, noting that it sold "a lot more" wireless transceivers for wireless applications than originally expected. Finisar noted that the wireless products have lower than average gross margins and that it will continue to pursue the "wireless opportunity" in spite of lower margins. Finisar sees its product mix in the near term to be relatively similar to what it is seeing in this quarter. ANALYST REACTION: This morning, analyst commentary was mixed. Research firms Piper Jaffray and Raymond James both said weakness in Finisar was a buying opportunity, however each lowered their respective price targets on the shares. Another firm, Craig-Hallum, downgraded Finisar to Hold from Buy. PRICE ACTION: In late morning trading, Finisar fell $5.46, or about 21.5%, to $19.80 on nearly eight times its average daily trading volume. Despite today’s pull back, the stock has gained approximately 35% over the past twelve months. OTHERS TO WATCH: Other companies that provide telecommunication components include Oplink Communications (OPLK), Oclaro (OCLR), Ciena (CIEN), and Juniper Networks (JNPR).
News For FNSR;OPLK;OCLR;CIEN;JNPR From The Last 14 Days
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November 25, 2014
16:19 EDTOPLKGabelli reports 8.24% stake in Oplink Communications
November 21, 2014
06:49 EDTCIENCiena initiated with an Outperform at Northland
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November 20, 2014
06:08 EDTOPLKOplink Communications downgraded to Neutral from Buy at B. Riley
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November 19, 2014
12:46 EDTOPLKOn The Fly: Midday Wrap
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11:10 EDTOPLKOplink Communications downgraded to Neutral from Buy at Sidoti
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08:06 EDTOPLKOplink to be acquired by Koch Industries for $24.25 per share, cash
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07:40 EDTJNPRUBS to hold a conference
Global Technology Conference to be held in Sausalito, California on November 18-20 with webcasted company presentations to begin on November 19 at 10:45 am; not all company presentations may be webcasted.Webcast Link
November 18, 2014
07:12 EDTCIENCiena risk/reward attractive following pullback, says William Blair
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November 13, 2014
11:37 EDTJNPRJuniper says 'customer' noted in CEO change in good standing
On November 10, the company announced that Rami Rahim had been named CEO after Shaygan Kheradpir resigned as CEO and director of the company. The company said his resignation followed a review by the board of his leadership and his conduct in connection with a particular negotiation with a customer.
11:27 EDTJNPRJuniper cites significant share count reduction
11:23 EDTJNPRJuniper sees Q4 tracking in line with previous expectations
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November 12, 2014
11:32 EDTJNPREZchip believes growth from ZTE will resume in the coming quarters
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