Finisar Corp. (NASDAQ:FNSR), the optical communication components and subsystems manufacturer, will release its first-quarter results for fiscal 2018 after market close on Sept. 7. The first quarter of fiscal 2018 ended July 30.
For the first quarter, analysts forecast the company will report an EPS, adjusted to one-time charges, of 40 cents.
Source: Yahoo Finance
The average EPS, as forecasted by analysts, represents a 5.3% increase year over year. Estimates on Finisar’s first quarter of fiscal 2018 earnings range between a low estimate of 38 cents and a high estimate of 43 cents.
These estimates are backed by revenue forecasts of $341.63 million for the quarter.
Source: Yahoo Finance
This average estimate represents a 0.10% upside from 2016 revenue. Estimates range between a low of $340 million and a high of $345.4 million.
Let’s have a quick look at the most important figures of Finisar’s financials: The company’s balance sheet is solid with a sizable cash on hand of $1.24 billion and securities of $11.09 per share and a total debt of $707.78 million, which leads to a total debt-equity ratio of 45.2 versus an industry average of 111.64. With a current ratio of 7.58 and a quick ratio of 6.26, Finisar has ample financial flexibility to meet its short-term obligations with its cash on hand, securities and other short-term cash conversion cycle current assets.
The interest coverage ratio, which measures the company’s ability to pay interest expenses on outstanding debt, is 8.69, well above the standard of 1.5.
The company has approximately 113.85 million shares outstanding, of which 1.12% is held by insiders and 95.70% is held by institutions. Based on the current market value of $23.19 per share, Finisar has a market capitalization value of $2.64 billion.
The analysts’ average target price is $36.42 per share, and this value represents a 57.1% upside from the current share price. The recommendation rating is 1.8 out of a total of 5.
The stock is uptrending again, though, as an effect of two major tumbles started in early March and August; the tech stock lost 23.4% year to date and is now trading only a few dollars above its 52-week low of $21.53. The 52-week high is $36.85.
The price-earnings (P/E) ratio is 10.59, the price-sales (P/S) ratio is 1.82, and the price-book (P/B) ratio is 1.65. The analysts forecast a forward P/E ratio of 10.37 that, combined with their forecasted EPS of $2.05 for full-year 2018, gives us a value of $21.26 per share.
Disclosure: I have no positions in Finisar.
