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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