The 10-second takeaway
For the quarter ended March 30 (Q1), Infinera beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share dropped. GAAP loss per share shrank.
Gross margins contracted, operating margins increased, net margins increased.
Infinera recorded revenue of $124.6 million. The six analysts polled by S&P Capital IQ hoped for revenue of $119.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $104.7 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 -$0.06. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share. Non-GAAP EPS were -$0.06 for Q1 compared to -$0.10 per share for the prior-year quarter. GAAP EPS were -$0.13 for Q1 against -$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.
For the quarter, gross margin was 34.3%, 430 basis points worse than the prior-year quarter. Operating margin was -12.0%, 700 basis points better than the prior-year quarter. Net margin was -12.3%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $126.1 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $515.4 million. The average EPS estimate is -$0.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,822 members out of 1,859 rating the stock outperform, and 37 members rating it underperform. Among 503 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 498 give Infinera a green thumbs-up, and five 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 $8.49.
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