Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Infinera (Nasdaq: INFN ) fell as much as 19% in early trading today after reporting fourth-quarter results that met revised guidance but missed consensus revenue estimates.
So what: In October, management said fewer orders from Level 3 Communications (Nasdaq: LVLT ) would impact revenue and earnings. Even so, analysts were expecting Infinera to book $117.6 million in sales of optical gear. It took in $117.1 million instead, producing $0.07 in per-share earnings.
Now what: The sell-off has become silly. But to be fair, some of the drop could be due to general market panic over an uprising in Egypt that's forced President Hosni Mubarak to order a military crackdown. The tech-heavy Nasdaq index is down almost 2.45% as I write this.
But that should be a short-term problem. Over the long them, the needs of the Internet and Internet service providers haven't changed. Infinera's optical gear remains essential for modernizing the Internet.
Interested in more info on Infinera? Add it to your watchlist.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Report this Comment On January 28, 2011, at 5:34 PM, nikolo1973 wrote:
Tim, not the results for the last quarter caused todays crash - the outlook for the current quarter together with low visibility let the shares of INFN dive today.....
But for the long run your assumption might be correct. We will see.....
Report this Comment On January 29, 2011, at 10:28 AM, EquityBull wrote:
I have to ask why they lost Level 3? Did they find a better product from another competitor? Another product that was better, faster or cheaper? Level 3 must need a solution that Infinera provided that they get elsewhere. That usually means somebody else was better/faster/cheaper then they were.
That said...Level 3 is not known for its stellar network. I've seen problems with them and often hear cringes from others in the net industry when L3 is mentioned. Maybe they could use some INFN products to fix that?
Add your comment.