Why NeoPhotonics Shares Jumped and Then Fell Today
Shares of NeoPhotonics (NYSE: NPTN) went on a roller-coaster ride on Friday following Thursday night's second-quarter earnings report. The stock rose as much as 6.5% in the morning session but reversed to a 52-week low in the afternoon, ultimately recovering slightly to close down 10.9%.
The maker of optoelectronic components for use in fiber-optic networking equipment sent some mixed signals in this report. Revenue fell 26% year over year due to a previously disclosed order slowdown from its largest customer (Huawei) and other clients in China. The year-ago period's earnings of $0.15 per share turned into a net loss of the same size, driven by suboptimal manufacturing loads due to the Chinese slowdown.
That's all bad news, but sales turned out slightly stronger than the analyst consensus and the negative earnings were smaller.
Source: Fool.com
