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What's happening?
Shares of Infinera (INFN 2.04%) leaped 18% higher Friday morning after the communications hardware manufacturer reported strong fourth-quarter results and offered first-quarter guidance above Wall Street's expectations.
Why it's happening
Infinera's fourth-quarter revenue was 34% higher year over year at $186.3 million, and earnings came in at $0.13 per share; that was ahead of analysts' expectations of $181.2 million on the top line and $0.11 in EPS.
Infinera expects in the first quarter to earn between $0.08 and $0.12 per share on revenue ranging from $180 million to $190 million, while analysts had sought only $0.07 in EPS on $168 million in revenue. This is a strong showing, and CEO Tom Fallon is confident his company will continue to produce more quarters like this one -- he noted in the company's press release that the market has "accept[ed] our differentiated products and the overall Infinera experience."
