- Under-the-radar provider of advanced mixed-signal optics solutions preannounces very strong Q4/FY20 sales performance. The company's turnaround is gaining steam.
- Both the Aerospace and Defense and the Broadband segment reportedly outperformed expectations. Particularly cable operators have been ramping up their network debottlenecking efforts in recent months.
- With the substantial increase in both revenues and margins, EMCORE should be solidly profitable going forward.
- Management forecasts Broadband strength to continue for at least the next two quarters and has expressed confidence in the sustainability of the recent surge in orders.
- Valuation appears dirt cheap. Buy the shares with a medium-term price target of $6.80.
For further details see:
Emcore Corporation: Turnaround Is Gaining Steam - Strong Buy After Major Q4 Upside Preannouncement