Please ensure Javascript is enabled for purposes of website accessibility

Has Infinera Turned the Corner?

By John Reeves – Updated Apr 7, 2017 at 12:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

<p>A closer look at Infinera.</p>

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

Infinera's DTN-X offering continues to attract new customers. The company looks like it's ready to turn the corner. Infinera's sales came in slightly ahead of analysts' estimates, and the company still generated a loss on earnings. But Infinera now has 16 purchase commitments from customers, up from 10 in the previous quarter and four in the quarter before that. There is an unnamed Tier 1 customer that many think may be Verizon. It's more likely to be a carrier such as CenturyLink.

One catalyst coming up is that Infinera expects to receive its OSMINE certification, which would open up the domestic telecom market. Infinera faces plenty of competition from incumbents such as Ciena and Alcatel-Lucent. But the company continues to see good early adoption for its DTN-X product. It was nice to hear about revenue growth coming in 2013. Infinera has turned the corner and the stock is attractive here.

We all would like to build long-term wealth and retire well. In our free report "3 Stocks That Will Help You Retire Rich," we reveal some outstanding stock ideas that might help you achieve your long-term investing goals. Click here to keep reading.


David Meier owns shares of Infinera. John Reeves owns shares of Verizon Communications. The Motley Fool owns shares of Infinera. Motley Fool newsletter services recommend Infinera. We Fools don't 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.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.