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What's in Store for Infinera (INFN) this Earnings Season?
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Infinera Corp. (INFN - Free Report) , leading optical transport network developer, is slated to report second-quarter 2016 financial numbers after market close on Jul 27.
Last quarter, Infinera posted a positive earnings surprise of 27.27%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters, with an average beat of 32.89%. Let’s see how things are shaping up for this announcement.
Infinera recently announced that it has joined the Telecom Infra Project (TIP) to help accelerate the pace of innovation in telecommunications infrastructure. This transaction will help maintain Infinera's leadership in technology innovation and large-scale photonic integration to meet connectivity requirements of networks across the globe.
However, stiff competition from peers in the highly competitive digital optical networking market raises concern and might hamper the company’s quarterly performance.
Earnings Whispers
Our proven model does not conclusively show that Infinera is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Infinera has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 13 cents.
Zacks Rank: Infinera has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Open Text Corporation (OTEX - Free Report) , with an earnings ESP of +1.10% and a Zacks Rank #1.
Intel Corporation (INTC - Free Report) , with an Earnings ESP of +1.52% and a Zacks Rank #2.
Charter Communications Inc. (CHTR - Free Report) , with an Earnings ESP of +404.76% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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What's in Store for Infinera (INFN) this Earnings Season?
Infinera Corp. (INFN - Free Report) , leading optical transport network developer, is slated to report second-quarter 2016 financial numbers after market close on Jul 27.
Last quarter, Infinera posted a positive earnings surprise of 27.27%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters, with an average beat of 32.89%. Let’s see how things are shaping up for this announcement.
INFINERA CORP Price and EPS Surprise
INFINERA CORP Price and EPS Surprise | INFINERA CORP Quote
Factors at Play
Infinera recently announced that it has joined the Telecom Infra Project (TIP) to help accelerate the pace of innovation in telecommunications infrastructure. This transaction will help maintain Infinera's leadership in technology innovation and large-scale photonic integration to meet connectivity requirements of networks across the globe.
However, stiff competition from peers in the highly competitive digital optical networking market raises concern and might hamper the company’s quarterly performance.
Earnings Whispers
Our proven model does not conclusively show that Infinera is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Infinera has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 13 cents.
Zacks Rank: Infinera has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Open Text Corporation (OTEX - Free Report) , with an earnings ESP of +1.10% and a Zacks Rank #1.
Intel Corporation (INTC - Free Report) , with an Earnings ESP of +1.52% and a Zacks Rank #2.
Charter Communications Inc. (CHTR - Free Report) , with an Earnings ESP of +404.76% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>