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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