Infinera Beats Up on Analysts Yet Again

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 5, 2013 at 12:00AM
Other

Infinera (Nasdaq: INFN) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Infinera met expectations 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 increased.

Revenue details
Infinera chalked up revenue of $128.1 million. The five analysts polled by S&P Capital IQ hoped for revenue of $127.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $112.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.05. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.14 for Q4 versus -$0.19 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.8%, 610 basis points worse than the prior-year quarter. Operating margin was -12.1%, 490 basis points better than the prior-year quarter. Net margin was -12.6%, 470 basis points better than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $119.4 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $510.8 million. The average EPS estimate is -$0.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,818 members out of 1,852 rating the stock outperform, and 34 members rating it underperform. Among 551 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 544 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 outperform, with an average price target of $6.35.

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