Updated from 10:37 AM EDT.

NEW YORK (TheStreet) -- Shares of Finisar (FNSR - Get Report) are jumping 7.62% to $18.92 on heavy trading volume late Friday afternoon after the Sunnyvale, CA-based company reported better-than-expected results for the 2016 fiscal fourth quarter and provided upbeat guidance.

After yesterday's closing bell, the fiber optic communications technology company posted adjusted earnings of 29 cents per diluted share, surpassing analysts' expectations of 25 cents per share.

Revenue for the period was $318.79 million, above Wall Street's projections of $317.38 million.

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

For the 2017 fiscal first quarter, Finisar sees earnings per share between 27 cents and 33 cents on revenue of $323 million to $343 million.

Analysts are looking for earnings of 27 cents per share on revenue of $327.2 million.

Barclays raised its price target on the stock to $20 from $17 and maintained its "equal weight" rating today.

"Demand is driving capacity constraints, strong revenues and an even better revenue outlook: F4Q16 beat expectations, but was still within guidance. Datacom was strong, especially 100G, and 40G recovered," the firm wrote in an analyst note.

"Revs would have been stronger but telecom was hampered by capacity constraints, lumpy customer order patterns and execution issues including delayed ROADM qualification," Barclays added.

The strong sequential revenue guidance is what may drive the stock higher, the firm noted. The $333 million mid-point implies quarter-over-quarter growth of 6%.

About 5.55 million of the company's shares were traded by late this afternoon vs. its average volume of 1.23 million shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income.

But the team also finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Recently, 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.

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