Infinera Beats Up on Analysts Yet Again

Infinera (Nasdaq: INFN  ) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Infinera met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP loss per share contracted.

Gross margins dropped, operating margins grew, net margins increased.

Revenue details
Infinera chalked up revenue of $128.1 million. The five analysts polled by S&P Capital IQ hoped for revenue of $127.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $112.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.05. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.14 for Q4 versus -$0.19 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.8%, 610 basis points worse than the prior-year quarter. Operating margin was -12.1%, 490 basis points better than the prior-year quarter. Net margin was -12.6%, 470 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $119.4 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $510.8 million. The average EPS estimate is -$0.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,818 members out of 1,852 rating the stock outperform, and 34 members rating it underperform. Among 551 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 544 give Infinera a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Infinera is outperform, with an average price target of $6.35.

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Seth Jayson owned shares of the following at the time of publication: Infinera. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Infinera. The Motley Fool owns shares of Infinera. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On February 06, 2013, at 10:30 AM, gpickles wrote:

    'Seth' is a bot churning out these automated articles, regurgitating the numbers with some words around them so as to appear written by a person and passing it off as investment journalism. No context, no insight, no analysis, no human involvement; just...nothing. A good way for the Fool to generate cheap clicks, but a waste of bits and bandwidth for the rest of us.

    Way to go, Motley Fool; you've managed to destroy the respect and good will you once had with long-time readers like me. I'm gone.

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4/15/2014 3:59 PM
INFN $8.14 Down -0.09 -1.09%
Infinera CAPS Rating: *****

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