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Strength Seen in Infinera (INFN): Can Its 6.5% Jump Turn into More Strength?
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Infinera (INFN - Free Report) shares soared 6.5% in the last trading session to close at $6.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14% gain over the past four weeks.
The share price increase is largely attributable to improving topline performance. Infinera is witnessing increasing momentum in strategic deal wins with key service providers across United States, Europe, India and Australia.
In the last reported quarter, the GX Systems portfolio witnessed healthy performance. It won several design contracts with tier 1 companies in the global services sector.
The company also recently announced the commercial availability of 400 gig XR pluggables and also shipped its first Metro systems with vertically integrated pluggables.
Management noted that the utilization of pluggables in its Metro systems will be an important driver of margin expansion in the latter half of 2024.
Management highlighted that these strategic deal wins combined with design win funnel position it well for robust second half of 2024.
However, the company anticipates a slow start in the first half of 2024. For the first quarter of 2024, it expects revenues in the range of $320- $350 million.
This communications equipment maker is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -650%. Revenues are expected to be $337.73 million, down 13.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Infinera, the consensus EPS estimate for the quarter has been revised 414.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on INFN going forward to see if this recent jump can turn into more strength down the road.
Infinera belongs to the Zacks Computer - Networking industry. Another stock from the same industry, Cisco Systems (CSCO - Free Report) , closed the last trading session 1.3% lower at $48.74. Over the past month, CSCO has returned 0.8%.
Cisco's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. Compared to the company's year-ago EPS, this represents a change of -15%. Cisco currently boasts a Zacks Rank of #4 (Sell).
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Strength Seen in Infinera (INFN): Can Its 6.5% Jump Turn into More Strength?
Infinera (INFN - Free Report) shares soared 6.5% in the last trading session to close at $6.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14% gain over the past four weeks.
The share price increase is largely attributable to improving topline performance. Infinera is witnessing increasing momentum in strategic deal wins with key service providers across United States, Europe, India and Australia.
In the last reported quarter, the GX Systems portfolio witnessed healthy performance. It won several design contracts with tier 1 companies in the global services sector.
The company also recently announced the commercial availability of 400 gig XR pluggables and also shipped its first Metro systems with vertically integrated pluggables.
Management noted that the utilization of pluggables in its Metro systems will be an important driver of margin expansion in the latter half of 2024.
Management highlighted that these strategic deal wins combined with design win funnel position it well for robust second half of 2024.
However, the company anticipates a slow start in the first half of 2024. For the first quarter of 2024, it expects revenues in the range of $320- $350 million.
This communications equipment maker is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -650%. Revenues are expected to be $337.73 million, down 13.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Infinera, the consensus EPS estimate for the quarter has been revised 414.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on INFN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Infinera belongs to the Zacks Computer - Networking industry. Another stock from the same industry, Cisco Systems (CSCO - Free Report) , closed the last trading session 1.3% lower at $48.74. Over the past month, CSCO has returned 0.8%.
Cisco's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. Compared to the company's year-ago EPS, this represents a change of -15%. Cisco currently boasts a Zacks Rank of #4 (Sell).