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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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 recommends Infinera. The Motley Fool owns shares of 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.