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Infinera (INFN) Betters Q4 Earnings Estimates, Revenues Beat

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Infinera Corp. (INFN - Free Report) reported better-than-expected financial results in the fourth quarter of 2017.

The company reported net loss on a GAAP basis of $74.0 million or a loss of 50 cents per share against net income of $36.3 million or 25 cents in the year-ago quarter. Infinera’s adjusted loss of 12 cents was narrower than the Zacks Consensus Estimate of a loss of 13 cents.

Infinera Corporation Price, Consensus and EPS Surprise

 

Infinera Corporation Price, Consensus and EPS Surprise | Infinera Corporation Quote

 

Total revenues were $195.8 million, up 8.2% year over year and above the Zacks Consensus Estimate of $189.8 million. Segment-wise, product revenues were $160.54 million, up 6.1% year over year. Services revenues increased 18.9% to nearly $35.27 million. Domestic revenues contributed 53% to the total revenues, while the remaining 47% was generated from international markets.

Total operating expenses were $117.79 million, up from $114.90 million in fourth-quarter 2016.

As of Dec 31, 2017, Infinera’s cash from operations was a negative $21.93 million compared with $38.38 million at the end of 2016.

At the end of December 2017, Infinera had $116.35 million of cash and cash equivalents compared with $162.64 million at the end of 2016. The company had no debt against debt of $133.59 million at the end of 2016.

Zacks Rank & Price Performance

Infinera has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past six months, Infinera’s shares have returned 8.6% compared with the industry’s rally of 17.6%.

 

 

The company continues to face stiff competition from peers like Lantronix, Extreme Networks, NETGEAR (NTGR - Free Report) and Brocade Communications Systems in the digital optical networking market.

However, Infinera’s strategic business moves which include launches and alliances look impressive. Different network service providers are merging with the company for the deployment of the Infinera Cloud Xpress, regionally and globally, to reach out to customers with higher scalability and reliability. In November 2017, online streaming service provider, Netflix (NFLX - Free Report) , deployed the Infinera Cloud Xpress 2 to expand delivery capacity for streaming videos.

Further, Infinera collaborated with CenturyLink (CTL - Free Report) to deliver 2.5 terabits per second of capacity to connect research and education community around the world, leveraging the CenturyLink core network.

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