Acacia Communications: Nears 2-yr high on Q4 beat, forecast

Adtran Networks SE

22/02/2019 16:52

** Acacia Communications  ACIA.O  shares soar ~14 pct to
highest level since Apr 2017 after optical component maker's
results, forecast beat expectations
    ** Reports yr/yr revenue increase of 23.7 pct to $107.1 mln
vs analysts' avg estimate of $102.9 mln, per IBES data from
Refinitiv  urn:newsml:reuters.com:*:nGNX1NYXfs
    ** Adj EPS of 41 cents also beats consensus view of 35
cents; co has surpassed consensus on top and bottom line in 7 of
past 8 qtrs
    ** Forecasts Q1 2019 rev $96-$104 mln, adj EPS $0.18-$0.34
vs Street estimate of $92.6 mln/$0.24
    ** At least 3 brokerages raise their PTs; Piper Jaffray
reiterates "overweight", bumps PT by $12 to $59
    ** Piper analyst Troy Jensen says revenue increase primarily
due to return to normal ordering at ZTE  000063.SZ   0763.HK ,
strong growth from Cisco  CSCO.O  and existing data center
customer returning to 10-pct-plus status
    ** Believes ACIA's five 10-pct-plus customers in Q4 are ZTE,
CSCO, ADVA Optical Networking SE  ADAG.DE , Coriant (now
Infinera Corp  INFN.O ) and Alphabet's Google  GOOGL.O 
    ** Meanwhile, Infinera's stock jumps 12 pct on Fri despite
optical networking co's soft Q1 guide  urn:newsml:reuters.com:*:nGNX94w4yW. And shares
of optical firm Applied Optoelectronics  AAOI.O  erase steep
premarket losses and now down fractionally after it warns of an
inventory build-up  urn:newsml:reuters.com:*:nL3N20H3KJ
    ** So far in 2019, ACIA up 43 pct, INFN up 39 pct, while
AAOI off ~6 pct
    ** Other optical peers have notched strong gains to start
the year: Inphi  IPHI.N  35 pct, Viavi Solutions  VIAV.O  32
pct, Lumentum Holdings  LITE.O  20 pct, II-VI Inc  IIVI.O  27
pct and Neophotonics  NPTN.N  19 pct

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