The 10-second takeaway
For the quarter ended March 31 (Q1), Infinera met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share grew.
Margins dropped across the board.
Infinera booked revenue of $104.7 million. The eight analysts polled by S&P Capital IQ predicted sales of $105.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $92.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.10. The 10 earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share on the same basis. GAAP EPS were -$0.19 for Q1 versus -$0.16 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.6%, 740 basis points worse than the prior-year quarter. Operating margin was -19.0%, 180 basis points worse than the prior-year quarter. Net margin was -19.7%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.8 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $463.3 million. The average EPS estimate is -$0.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,794 members out of 1,829 rating the stock outperform, and 35 members rating it underperform. Among 530 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 524 give Infinera a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Infinera is hold, with an average price target of $8.59.
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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 owns shares of Infinera. Motley Fool newsletter services have recommended buying 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.