Shares of Finisar Corp. gained 3.7% in Friday morning trade even though the company’s earnings fell short of expectations and several analysts slashed their price targets. The company, which reported fiscal second-quarter earnings late Thursday, also delivered a lower-than-expected earnings outlook for the current quarter. Finisar, which makes products that help enable 3D-sensing technology, said on its earnings conference call that it had acquired a new plant in Texas and would expand manufacturing capacity. “This was a mixed quarter, with gross margin weakness from the low 3D utilization, but with shipments ramping, the trajectory suggests Finisar received certification to sell to Apple ,” wrote Raymond James analysts led by Simon Leopold. The firm lowered its price target to $22 from $27 but maintained a strong buy rating. Finisar shares, which closed at a 17-month low earlier this week, have fallen 38% so far in 2017, compared with an 18% gain for the S&P 500 .
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