Oclaro, Inc. (NASDAQ:OCLR) Gains Alongside Competitors

Oclaro, Inc. (NASDAQ:OCLR)

Shares of Oclaro, Inc. (NASDAQ:OCLR) gained over 10% in today’s trading on heavy volumes. Oclaro provides solutions for optical networks and is based in Sa Jose, CA. OCLR shares closed Friday at $8.50 and gapped up to open today’s trading at $8.88. Most of the gain took place in the first half-hour of trading and, before noon and 3 PMEST, OCLR shares hit resistance at $9.40 before ending the day at $9.36. Today’s volume was over 16.6 million – about 5 million above the 30-day, daily average.

There is reason to believe more upside exists. Oclaro, Inc. (NASDAQ:OCLR) shares are up over 114% for the year but still below their 52-week high of $11.30. Analysts have given OCLR shares a target price of $12 but its Relative Strength Index (RSI) stands at just 59 – a number that neither indicates an “oversold” or “overbought” condition.

Last week, Oclaro, Inc. (NASDAQ:OCLR) won Light Reading’s 2017 Leading Lights Award for the industry’s “Outstanding Components Vendor.” This award is given to the components vendor that stands out from its competitors, innovates constantly, helps set the industry trends, makes investors proud, and makes employees happy. Strangely though, OCLR dropped for three days after that announcement before today’s upward move.

A possible catalyst for today’s up move may have been the pronouncement of several analysts that China’s mobile sector is poised for more growth. Indeed, Oclaro, Inc. (NASDAQ:OCLR) competitors such as Applied Optoelectronics (NASDAQ:AAOI), Finisar (NASDAQ:FNSR), and Lumentum (NASDAQ (LITE) all saw their shares move higher on larger than normal volumes.

Earlier this month, Oclaro, Inc. (NASDAQ:OCLR) management had provided Q4 2017 guidance. Revenues are projected to come in between $144 – $152 million with non-GAAP gross margin between 38% and 41%. They also expect non-GAAP operating income to come in between $27 and $31 million.

Nine firms follow Oclaro, Inc. (NASDAQ:OCLR). All nine rate OCLR shares as a “Strong Buy”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Despite Rumors, Oclaro, Inc. (NASDAQ:OCLR) Sticking to Business

Oclaro, Inc. (NASDAQ:OCLR)

Oclaro, Inc. (NASDAQ:OCLR) had previously been the subject of talk concerning a takeover or merger. However at the conclusion of the industry’s Optical Fiber Communication exhibition, held in Los Angeles, analysts came away commenting that nothing appears imminent. Normally speculation regarding a merger or takeover is cause for a company’s stock value to rise. Often when such speculation is proved false, the stock’s value recedes. However today OCLR is up almost 7%. Further, OCLR hit $8.02 just last week and is now trading over $10.

San Jose, CA-based Oclaro, Inc. (NASDAQ:OCLR) develops and manufactures optical components, modules, and subsystems for networks and data centers that will enable the next generation of streaming video, cloud computing, VOIP, and other high-speed applications.

In 2016 there was movement in the sector leading to a possible merger between Finisar (FNSR) and Lumentum Holdings (LITE). Such a deal made sense when considering the industry’s competitive pricing pressures and the duplication of research and development efforts and expenses. However, that deal is now said to be not moving forward. Consequently, given the economies of scale a merger could bring, Oclaro, Inc. (NASDAQ:OCLR) is now rumored to be in position to be the next M&A target for Finisar. That deal is not imminent though. As a matter of fact, a highly placed Oclaro executive stated “companies get bought, not sold”.

Oclaro, Inc. (NASDAQ:OCLR) is well positioned to continue on its own. Of the ten Wall St. firms that cover the company, nine rate OCLR shares as a “Strong Buy” and one rates the shares as a “Buy”. Their consensus price target is over $14. EPS for OCLR shareholders has been trending upwards. In 2013 Oclaro reported an EPS loss of -$1.37 and that loss reduced each year and in 2016 Oclaro produced an EPS profit of $0.08.

Shares of OCLR are trading above their respective 20, 50, and 200-day moving averages. Even though OCLR shares have seen wide price swings on an inter-day basis, 69% of the shares are owned by institutions. Institutions typically are long-term holders of any shares they own. On the other hand, OCLR shares are heavily shorted. 16% of the share float is represented by shares being held short. Still, Oclaro, Inc. (NASDAQ:OCLR) has performed well YTD by gaining almost 7%. For the quarter, OCLR shares are up 5.5%.

3/24/2017
Ticker Symbol OCLR
Last Price a/o 11:57 AM EST  $                    10.18
Average Volume                9,100,000
Market Cap (mlns)  $              1,590.00
Sales (mlns) $515.60
Shares Outstanding (mlns) 166.59
Share Float (mlns) 157.9
Shortable Yes
Optionable Yes
Inside Ownership 2.60%
Short Float 16.00%
Short Interest Ratio 2.78
Quarterly Return 5.51%
YTD Return 6.93%
Year Return 86.55%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) Completes the Turn

Applied Optoelectronics, Inc. (NASDAQ:AAOI)

Applied Optoelectronics, Inc. (NASDAQ:AAOI) started out as a manufacturer and supplier of products to the cable television market. In 2013 the company took a deliberate turn to transform itself into a producer of products that market to data centers. Any time a company makes a strategic turn there is risk, but it appears that three years later the results are in – and Applied Optoelectronics came out a winner.

In 2014 Applied Optoelectronics, Inc. (NASDAQ:AAOI) reported total revenue growth at 66% over 2013 revenues and attributed that growth to their rapid expansion into the data center optical market. That growth was impressive enough to get the firm the 374th spot in the Deloitte’s 2014 Technology Fast 500. The growth continued in 2015 as Total Revenues grew 46% and GAAP Net Income more than doubled the 2014 figure.

Yesterday Applied Optoelectronics, Inc. (NASDAQ:AAOI) posted their full-year 2016 results. They did not disappoint – again. The Sugarland, TX company reported 2016 revenues up 37% over 2015. GAAP net income increased to $31.2 million, or $1.76 per diluted share, compared with net income of $10.8 million, or $0.65 per diluted share in 2015.

While AAOI shares gained less than 1% during Thursday’s regular session, the market responded to the earnings release by sending AAOI up over 12% in after-market trading to their highest-ever levels ($42.20) on moderate volumes. The growth in the stock has been jaw-dropping for a $600 million company. AAOI threatened to break below $8 in May of 2016 and today is sitting above $40, that is 500% growth in 1.5 years in a highly competitive industry that includes investor darlings such as Lumentum (LITE), Oclaro (OCLR), and ARRIS International (ARRS).

Throughout the transformation, one man remained at the helm. Dr. Thompson Lin is the founder, CEO, and Chairman of the Board of Applied Optoelectronics, Inc. (NASDAQ:AAOI). He founded the firm in 1997 after receiving a Ph.D. in Electrical Engineering from the University of Missouri. Dr. Lin has been awarded over ten patents and has authored over 200 technical papers. While those are impressive achievements, there is little doubt that his greatest achievement has been the skilled stewardship of Applied Optoelectronics, Inc. (NASDAQ:AAOI) through a highly competitive global market.

2/23/2017
Ticker Symbol AAOI
Last Price a/o 7:59 PM EST  $                    41.80
Average Volume                    511,380
Market Cap (mlns)  $                  619.00
Sales (mlns) $228.80
Shares Outstanding (mlns) 16.52
Share Float (mlns) 16.35
Shortable Yes
Optionable Yes
Inside Ownership 2.40%
Short Float 12.75%
Short Interest Ratio 4.08
Quarterly Return 42.96%
YTD Return 59.85%
Year Return 134.65%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20 year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

 

Infinera Corp. (Nasdaq: INFN) Beats Expectations and Shares Surge

Infinera Corporation – Nasdaq: INFN

Infinera Corporation (Nasdaq: INFN) is up today on better than expected results released last night. Infinera Corporation (Nasdaq: INFN) reported Q4 revenues of $181 million – a drop from $360 million from the comparable quarter last year, but better than the expected $175.4 million. Shares of INFN lost $0.12 EPS but that was $0.01 better than street estimates. Infinera Corporation (Nasdaq: INFN) quarterly net income was a net loss of $17 million. Despite worse year-on-year performance, the results were better than expected and INFN shares were upgraded by two industry analysts.

Infinera Corporation (Nasdaq: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations. Infinera Corporation’s end-to-end packet-optical portfolio is designed for long-haul, subsea, data center interconnect and metro applications. Infinera Corporation’s photonic integrated circuits enable optical networking solutions. Its competitors include Lumentum Holdings ($LITE), Finisar ($FNSR), Ciena ($CIEN), and Oclaro ($OCLR).

As recently as August, INFN shares had been rated as a “Strong Sell” by some despite impressive historical performance. EPS had steadily improved from a $0.78 loss in 2011 to a $0.39 profit in 2015. Infinera Corporation (Nasdaq: INFN) sales showed similar upward trends – $sales of $404.9 million in 2011 and $886.7 million in 2015.

As of this writing, four firms rate INFN shares as a “Strong Buy”, and ten rate the shares as a “Hold”. Their consensus price target is $9 – almost $3 less than where INFN is currently trading.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/10/2017
Ticker Symbol INFN
Last Price a/o 11:40 AM EST  $                    12.02
Average Volume                1,650,000
Market Cap (mlns)  $              1,350.00
Sales (mlns) $949.00
Shares Outstanding (mlns) 143.85
Share Float (mlns) 141.76
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 7.63%
Short Interest Ratio 6.55
Quarterly Return 18.99%
YTD Return 10.72%
Year Return -31.93%

Oclaro, Inc. (Nasdaq: OCLR) Announces Preliminary Results – Shares Climb

Oclaro, Inc. – Nasdaq: OCLR

Oclaro, Inc. announced preliminary financial results after the market closed and shares are up over 8% on heavy volume. The San Jose, CA-based firm announced revenues at $153.5 – $154 million on prior guidance of $146 – $$154 million with gross margins of 40% versus prior guidance between 33% and 36%.

CEO Greg Dougherty commented in a press release – “Our excellent preliminary results for the December quarter once again demonstrated the strength of Oclaro’s products in the markets we serve. We expect revenue to come in at the high end of guidance as 100G and beyond sales again exhibited excellent growth.  In addition, we expect the quarterly results to reflect record levels of gross margin and operating income and exceed our prior guidance.  Our performance was driven by strong execution, a richer product mix, and favorable foreign exchange rates.”

Oclaro, Inc. develops optical components, modules, and subsystems for optical transport and metro networks, enterprise networks, and data centers. They trade on the Nasdaq under ticker OCLR. Ten firms follow Oclaro. Nine have rated OCLR shares as a “Strong Buy” and one rates OCLR as a “Hold”. The consensus price target is $11.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/18/2017
Ticker Symbol OCLR
Last Price a/o 5:25 PM EST  $                      8.84
Average Volume 5.36 million
Market Cap $1.36 Billion
Sales $455.9 million
Shares Outstanding 167.48 million
Share Float 157 million
Shortable Yes
Optionable Yes
Inside Ownership 2.90%
Short Float 10.17%
Short Interest Ratio 2.98
Quarterly Return 3.70%
YTD Return -9.16%
Year Return 135.65%

Oclaro, Inc (Nasdaq: OCLR) Shares Propelled by Acquisition Rumors

Oclaro Inc., Nasdaq: OCLR

Shares of San Jose, CA-based Oclaro Inc. are higher on rumors of an acquisition by Finisar Corporation (Nasdaq: FNSR). Shares of Oclaro Inc. trade on the Nasdaq under ticker symbol OCLR.

Oclaro Inc. develops and provides products for fast optical networks and high-speed interconnects that are enabling the next wave of streaming video, cloud computing, voice over IP and other high-speed and bandwidth-intensive applications. Oclaro operates R&D and chip fabrication facilities in the U.S., U.K., Italy, and Japan; in-house and contract manufacturing sites in China, Malaysia, and Thailand; and design, sales, and service organizations in each of the major regions around the world.

Oclaro’s financials are impressive. From their November 1, 2016 press release:

Results for the First Quarter of Fiscal 2017

  • Revenues were $135.5 million for the first quarter of fiscal 2017, and compare with revenues of $125.2 million in the fourth quarter of fiscal 2016, which was a 14 week quarter, and revenues of $87.6 million in the first quarter of fiscal 2016.
  • GAAP gross margin was 34.2% for the first quarter of fiscal 2017, compared with GAAP gross margin of 32.1% in the fourth quarter of fiscal 2016, and a GAAP gross margin of 25.9% in the first quarter of fiscal 2016.
  • Adjusted EBITDA was $25.6 million for the first quarter of fiscal 2017, compared with Adjusted EBITDA of $19.2 million in the fourth quarter of fiscal 2016, and Adjusted EBITDA of $4.2 million in the first quarter of fiscal 2016.
  • Cash, cash equivalents, and restricted cash were $229.3 million at October 1, 2016.

Nine analysts have OCLR ranked as a “Strong Buy” and one has it rated as a “Buy”. Price target consensus for OCLR is $12 however rumors peg the takeover price at $13. Investors should be aware that all 2016 insider transactions were sales – no management acquired shares of OCLR in 2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol OCLR
Last Price a/o 8:00 AM EST  $               9.40
Average Volume 5.19 million
Market Cap $1.43 Billion
Sales $456 million
Shares Outstanding 154.95 million
Share Float 154.95 million
Shortable Yes
Optionable Yes
Inside Ownership 2.90%
Short Float 8.38%
Short Interest Ratio 2.5
Quarterly Return 1.43%
YTD Return 165.23%
Year Return 166.76%