Why Infinera Corp. Skyrocketed 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 optical networking technologist Infinera Corp. (NASDAQ: INFN  ) soared 20% today after its quarterly results impressed Wall Street.

So what: The stock has plunged in recent months on concerns over Infinera's weakening bottom line, but today's Q4 results -- breakeven EPS versus a loss of $0.05 in the year-ago period -- suggest that things are starting to turn. In fact, revenue for the quarter increased a solid 8.6% over the year-ago period, reigniting analyst optimism over the growth potential of Infinera's next-generation platform, DTN-X.

Now what: Don't expect the turnaround momentum to slow anytime soon. "As we look ahead, we believe the opportunity for the DTN-X remains wide open with the 100G cycle still in its early stages," noted CEO Tom Fallon. "For 2014, we plan to continue our focus on winning new deployments and gaining market share, while driving enhanced profitability, and we remain optimistic about our outlook over the short, intermediate and long-term." More important, with Infinera shares still off 30% from their 52-week highs and trading at a clear price-to-sales discount to the sector, there seems to be plenty of room left to buy into that optimism.

More compelling ways to grow
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Read/Post Comments (2) | Recommend This Article (6)

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 Report this Comment icon found on every comment.

  • Report this Comment On January 30, 2014, at 1:01 PM, curiouswe wrote:

    I have high hopes for this stock/company but please keep things real. The following is a more truthful statement about this company's finances.

    "Non-GAAP net loss for the quarter was $(0.2) million, or breakeven on an earnings per share basis, compared to net income of $12.8 million, or $0.10 per diluted share in the third quarter of 2013 and net loss of $(6.0) million, or $(0.05) per share, in the fourth quarter of 2012."

    I, and I hope many others, would have been just fine with this article if NON-GAAP would have been specified. Keep up the good work and keep improving.

    I have owned INFN since the fools recomendation sooo many years ago.

    Dan

  • Report this Comment On January 30, 2014, at 1:04 PM, curiouswe wrote:

    I have high hopes for this stock/company but please keep things real. The following is a more truthful statement about this company's finances.

    "Non-GAAP net loss for the quarter was $(0.2) million, or breakeven on an earnings per share basis, compared to net income of $12.8 million, or $0.10 per diluted share in the third quarter of 2013 and net loss of $(6.0) million, or $(0.05) per share, in the fourth quarter of 2012."

    I, and I hope many others, would have been just fine with this article if NON-GAAP would have been specified. Keep up the good work and keep improving.

    I have owned INFN since the fools recommendation sooo many years ago.

    Dan

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2816842, ~/Articles/ArticleHandler.aspx, 9/16/2014 11:57:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement