Please ensure Javascript is enabled for purposes of website accessibility

Infinera Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:43PM

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

Just the facts, Fool.

Infinera (Nasdaq: INFN) reported earnings on April 24. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Infinera fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Infinera Corporation Stock Quote
Infinera Corporation
$5.54 (-1.07%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

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