Infinera Misses Earnings Estimates, Revenue Slightly Up

Infinera (INFN) reported $0.03 earnings per share, below estimates. This performance could affect investor sentiment, given its earnings surprise of -66.67%. The quarter's revenue of $414.39 million did exceed expectations slightly.

Date: 28-02-2025

AI Rating: 4

Infinera's Earnings Per Share (EPS)
Infinera reported earnings of $0.03 per share. This figure misses the Zacks Consensus Estimate of $0.09 per share, indicating a significant shortfall in expected profitability. Such a disappointing EPS can negatively impact investor confidence and often results in bearish stock price movement.

Quarterly Revenue Comparison
Despite the EPS miss, Infinera's revenues for the quarter totaled $414.39 million, which surpassed the Zacks Consensus Estimate by 0.33%. However, this figure is lower than the year-ago revenues of $453.46 million, suggesting a decline in sales year-over-year. Although the company has managed to top revenue estimates two times in the last four quarters, the decline in absolute revenue may weigh negatively on stock prices.

Market Performance Indicator
Since the beginning of the year, Infinera shares have gained about 1.2%, while the S&P 500 has gained 1.3%. This slight underperformance might indicate potential investor concerns, which could lead to caution among potential buyers.

Future Earnings Outlook
Looking ahead, the current consensus EPS estimate is -$0.01 for the coming quarter, alongside a revenue estimate of $351.17 million. If these projected figures are accurate and if further revisions remain unfavorable, the stock could face additional selling pressure.

The report also notes that the Computer - Networking industry, where Infinera operates, is currently ranked in the top 27% of Zacks industries. This positive ranking could provide some support but may not be enough to offset Infinera's own challenges.

Stocks: INFN