Acacia Shares to Open At Nearly 4x Their May IPO Price Today

acacia-acia-logoOptical chipmaker Acacia Communications, Inc. (NASDAQ:ACIA) is set to open trading today at almost four times is May 2016 IPO price, a day after filing its first earnings report as a publicly-traded company.

The company IPO’ed back on May 13, making its debut at $23 per share. In premarket trading this morning, ACIA shares are changing hands around $82.45 (+22% from yesterday’s close) — a 258% gain over the past three months.

The big uptick today comes on the heels of the company’s earnings report last night. ACIA posted Q2 earnings of 77 cents per share on 100% sales growth to $116 million. Analysts expected just 30 cents per share on $85.8 million in revenue.

Its gross profit margin of 47% rose from 41.9% in Q1. A year ago, its margin was just 35.3$.

Looking ahead, Acacia forecast third quarter revenue to range from $120 million to $128 million, with EPS ranging between 64 cents and 76 cents. Analysts are looking for much lower revenue of $92 million and EPS of just 43 cents.

From the press release:

“Our record second quarter results exceeded our expectations across the board and reflect the success of our disruptive technology in transforming cloud, content and communications networks. These results are a testament to our strategy and demonstrate our leadership position in the high-growth 100G plus optical networking market,” said Raj Shanmugaraj, President and CEO of Acacia Communications, “We continue to see strong global demand for our products, driven by metro and inter-data center network infrastructure buildouts.”

“We are delighted to have completed our IPO during the second quarter and are excited about the many opportunities ahead of us,” said John Gavin, CFO of Acacia Communications, “The IPO enabled us to strengthen Acacia Communications’ balance sheet while providing substantial capacity to further grow the business.”

Acacia shares rose $14.75 (+21.79%) to $82.45 in premarket trading Friday.


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