The 10-second takeaway
For the quarter ended June 29 (Q2), 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 dropped.
Margins increased across the board.
Infinera booked revenue of $138.4 million. The eight analysts polled by S&P Capital IQ expected sales of $134.7 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $93.5 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 -$0.01. The 10 earnings estimates compiled by S&P Capital IQ averaged -$0.02 per share. Non-GAAP EPS were -$0.01 for Q2 against -$0.17 per share for the prior-year quarter. GAAP EPS were -$0.09 for Q2 against -$0.27 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 37.3%, 270 basis points better than the prior-year quarter. Operating margin was -6.2%, much better than the prior-year quarter. Net margin was -7.2%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $135.0 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $536.0 million. The average EPS estimate is -$0.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,813 members out of 1,850 rating the stock outperform, and 37 members rating it underperform. Among 532 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 526 give Infinera a green thumbs-up, and six 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 $10.38.
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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.