The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Infinera beat slightly 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 grew.
Infinera booked revenue of $112.2 million. The six analysts polled by S&P Capital IQ anticipated revenue of $110.3 million on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $104.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The eight earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. GAAP EPS were -$0.17 for Q3 against -$0.21 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 37.0%, 210 basis points worse than the prior-year quarter. Operating margin was -16.2%, 470 basis points better than the prior-year quarter. Net margin was -17.0%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $126.3 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $434.5 million. The average EPS estimate is -$0.45.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,814 members out of 1,850 rating the stock outperform, and 36 members rating it underperform. Among 493 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 486 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 hold, with an average price target of $7.40.
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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 recommend 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.