Technology
Why Analysts Are Taking a Backseat on Infinera
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Infinera Corp. (NASDAQ: INFN) saw its shares get crushed after beating earnings expectations in the first quarter. Revenues were in line but a little too soft, and its outlook for the second quarter was a disappointment. As a result, this stock hit a new 52-week low on Thursday. Analysts took this opportunity to weigh in on the stock and what direction it is headed.
Revenue for the most recent quarter was $245.0 million, compared to $260.6 million in the fourth quarter of 2015 and even to $186.9 million in the first quarter from 2015. Earnings per share (EPS) were $0.19, versus $0.21 in the fourth quarter and $0.16 in the year-ago quarter. The consensus estimates called for $0.17 in EPS on $246.2 million in revenue.
The operating margin for the quarter was 12.3%, down slightly from 12.7% in the fourth quarter and barely up from 12.2% in the first quarter of 2015.
Tom Fallon, CEO of Infinera, commented on the earnings release:
We continued to execute well in the first quarter, winning deals across our product portfolio and delivering strong financial results. Responding to ongoing growth in bandwidth demand, customers are increasingly turning to Infinera to address the advanced scalability and efficiency required to operate their networks. By continuing to deliver the most innovative solutions and the Infinera Experience to our customers, I am confident that we will continue to gain market share across the end-to-end optical transport market and generate outstanding bottom line results.
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