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What's in Store for Infinera (INFN) this Earnings Season?
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Infinera Corp. (INFN - Free Report) , a leading optical transport network developer, is slated to report fourth-quarter 2016 financial numbers after market close on Feb 9.
Last quarter, Infinera posted a positive earnings surprise of 71.43%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in all the previous four quarters, with an average beat of 32.09%.
Further, shares of Infinera registered growth of 21.14% compared with the Zacks categorized ‘Computer- Networks’ industry’s gain of 2.14% over the past three months.
Let’s see how things are shaping up for this announcement.
Factors at Play
We are impressed with Infinera’s strategic business moves which include new launches and alliances.
On Oct 5, 2016, Infinera partnered with the Optical Internetworking Forum (OIF) and Open Networking Foundation (ONF) to demonstrate multi-vendor, multi-layer software defined networking (SDN) Transport Application Programming Interface (T-API) interoperability with the Infinera Xceed Software Suite and the DTN-X Family of packet optical transport platforms. This alliance has helped the company accelerate the standardization of software-defined networking (SDN). Further, the launch of a new partner program which has eased the process of delivering end-to-end Intelligent Transports worldwide bodes well.
Infinera recently tied up with CenturyLink, Inc. to deliver 2.5 terabits per second (Tb/s) of super-channel transmission capacity to support SCinet at the International Conference for High Performance Computing, Networking, Storage and Analysis (SC16). This transaction will help maintain Infinera's leadership in technology innovation to meet connectivity requirements of networks across the globe. Infinera’s decision to power cloud scale networks should also boost its cloud suite.
However, stiff competition from peers like Lantronix, Inc. (LTRX - Free Report) in the cut-throat 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 a loss of 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Infinera has a Zacks Rank #4 (Sell).
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here is a company that has the right combination of elements to post an earnings beat this quarter.
Applied Optoelectronics, Inc. (AAOI - Free Report) is scheduled to release fourth-quarter 2016 financial results on Feb 23, 2017. Its earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters, with an average beat of 106.74%. It currently has an Earnings ESP of +15.87% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
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What's in Store for Infinera (INFN) this Earnings Season?
Infinera Corp. (INFN - Free Report) , a leading optical transport network developer, is slated to report fourth-quarter 2016 financial numbers after market close on Feb 9.
Last quarter, Infinera posted a positive earnings surprise of 71.43%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in all the previous four quarters, with an average beat of 32.09%.
Further, shares of Infinera registered growth of 21.14% compared with the Zacks categorized ‘Computer- Networks’ industry’s gain of 2.14% over the past three months.
Let’s see how things are shaping up for this announcement.
Factors at Play
We are impressed with Infinera’s strategic business moves which include new launches and alliances.
On Oct 5, 2016, Infinera partnered with the Optical Internetworking Forum (OIF) and Open Networking Foundation (ONF) to demonstrate multi-vendor, multi-layer software defined networking (SDN) Transport Application Programming Interface (T-API) interoperability with the Infinera Xceed Software Suite and the DTN-X Family of packet optical transport platforms. This alliance has helped the company accelerate the standardization of software-defined networking (SDN). Further, the launch of a new partner program which has eased the process of delivering end-to-end Intelligent Transports worldwide bodes well.
Infinera recently tied up with CenturyLink, Inc. to deliver 2.5 terabits per second (Tb/s) of super-channel transmission capacity to support SCinet at the International Conference for High Performance Computing, Networking, Storage and Analysis (SC16). This transaction will help maintain Infinera's leadership in technology innovation to meet connectivity requirements of networks across the globe. Infinera’s decision to power cloud scale networks should also boost its cloud suite.
However, stiff competition from peers like Lantronix, Inc. (LTRX - Free Report) in the cut-throat 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 a loss of 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Infinera has a Zacks Rank #4 (Sell).
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Infinera Corporation Price and EPS Surprise
Infinera Corporation Price and EPS Surprise | Infinera Corporation Quote
Stock to Consider
Here is a company that has the right combination of elements to post an earnings beat this quarter.
Applied Optoelectronics, Inc. (AAOI - Free Report) is scheduled to release fourth-quarter 2016 financial results on Feb 23, 2017. Its earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters, with an average beat of 106.74%. It currently has an Earnings ESP of +15.87% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>