What happened
Shares of optical networking technology company Acacia Communications (NASDAQ: ACIA) soared on Friday, rising as much as 18.1%. But the stock finished the trading day up 17.6%.
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The stock’s gain was fueled by the company’s fourth-quarter results, which featured better-than-expected top- and bottom-line figures.
So what
Acacia posted fourth-quarter revenue of $107.1 million, up 23.7% year over year. On average, analysts were expecting revenue of $103 million. The company’s non-GAAP (generally accepted accounting principles) earnings per share was $0.41, up from $0.27 in the year-ago quarter. This beat analysts’ consensus estimate for non-GAAP EPS of $0.35.
“I am pleased with our strong fourth quarter results,” said Acacia CEO Raj Shanmugaraj, “which exceeded the high end of our guidance on revenue, non-GAAP net income and non-GAAP diluted earnings per share.” The CEO also noted that the company made progress on its efforts to diversify its revenue base and expand its product portfolio.
Now what
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For its first quarter, management expects revenue between $96 million and $104 million. Analysts expected just $92.6 million of revenue during the quarter. The company also guided for first-quarter non-GAAP EPS between $0.18 and $0.34, which encompasses analysts’ consensus forecast for non-GAAP EPS of $0.24 during the period.
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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
