NEW YORK (TheStreet) -- Finisar (FNSR - Get Report) stock is gaining 6.94% to $18.80 in after-hours trading on Thursday after the company delivered financial results that topped estimates for the fiscal 2016 fourth quarter.

The Sunnyvale, CA-based fiber optic communications technology company reported adjusted earnings of 29 cents per diluted share on revenue of $318.79 million for the quarter ended May 1.

Wall Street was anticipating earnings of 25 cents per share on revenue of $317.38 million for the latest quarter.

Revenue increased 3.1% sequentially, "driven by growth in demand for 40G and 100G transceivers for datacom applications," CEO Jerry Rawls said in a statement.

"Better than expected gross margins, due to favorable product mix, and lower expenses resulted in earnings per fully diluted share exceeding the upper end of our prior guidance range," Rawls added.

Separately, Finisar has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income, which offsets generally disappointing stock performance, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: FNSR

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.