Infinera: Future Is Even More Exciting
Darspal S Mann
Darspal S Mann
Thu, Oct. 27, 3:00 PM
Thu, Oct. 27, 12:24 PM
- Infinera (NASDAQ:INFN), reporting Q3 results yesterday and kicking off an upcoming wave of earnings for the segment, realized an expected 20% revenue fall-off, continuing to note a challenging environment and weak demand. Its shares are lower today by 8%.
- Others in the space – Acacia Communications (ACIA -11.8%), Oclaro (OCLR -9%), NeoPhotonics (NPTN -7.2%), Fabrinet (FN -5.3%), Ciena (CIEN -3%), Finisar (FNSR -5%) (strong Q3 reported in September), Lumentum Holdings (LITE -2.7%), Applied Optoelectronics (AAOI -4.6%)
Thu, Oct. 27, 9:14 AM
Wed, Oct. 26, 6:02 PM
- Results – revenue $185.45M (-20.2% Y/Y, $10.88M below estimates), EPS $0.05 ($0.12 above estimates), gross margin 49.2% (vs. 50.4% Q/Q, 47.5% Y/Y), operating margin 3.6% (vs. 13.2% Q/Q, 14.4% Y/Y), net income $7.4M (vs. $30.9M Q/Q, $32.2M Y/Y)
- CEO Tom Fallon: "As expected, weak demand across much of our business in the third quarter led to financial results that were below our standards. While the revenue environment is likely to remain challenging in the near term, we are making continued progress towards delivering our next generation of products and increasing the cadence in which we will introduce step function technology improvements. I firmly believe that we have the team and the core technologies that will enable us to recover from our current challenges and ultimately return to delivering differentiated financial results."
- Infinera (NASDAQ:INFN) has been hit hard since guiding for the now-realized quarter, currently trading 34% lower since late July and 55% since last October.
- Conference call (outlook forthcoming)
- Press release
Wed, Oct. 26, 4:18 PM
Tue, Oct. 25, 5:35 PM
- ABX, ACGL, AEM, AHL, ALDW, ALGT, AMSF, ANIK, AR, ARI, ARRS, AXS, AXTI, BGG, BWLD, CAA, CACI, CAKE, CDE, CHE, CMO, CMPR, CRY, CSGP, CSII, CW, DDR, DLB, DRE, ECHO, EFX, EGHT, EPE, EQY, ESND, ESV, EXR, FBHS, FFIV, FISV, FORR, GG, GRPN, GTY, HUBG, IBKC, INFN, JBT, KEX, KMT, KNX, KRA, KRC, KWR, LLNW, LMAT, MB, MC, MEOH, MKSI, MMLP, MMSI, MN, MUR, NEM, NEU, NOW, NTGR, NTRI, NXPI, O, OCN, ORLY, PLNT, PLXS, PPC, PRXL, PSA, PTC, QDEL, QEP, QTM, RCII, RGA, RHI, RJF, SCI, SFLY, SGMO, SHLM, SIGI, SU, TER, TILE, TIS, TRN, TSLA, TTMI, TXN, TYL, UCTT, UHS, UNM, VAR, VMW, WCN, WDC, WIRE, WLL, XL
Thu, Jul. 28, 3:03 PM
Thu, Jul. 28, 12:59 PM
Thu, Jul. 28, 10:05 AM
- Infinera (INFN -33.1%) beat expectations yesterday, but its demand and near-term revenue outlooks are bleak.
- The company projects Q3 revenue of $185M, +/- $5M. The midpoint of this guidance would denote a 20% Y/Y revenue decrease.
- Infinera has so far been downgraded at J.P. Morgan, Nomura, B. Riley & Co. and Raymond James.
- Management cites weakening demand in North America and Europe, long-haul win challenges and subsea business win rates lower-than-expected that the company expects to hurt revenue for a period of time going forward.
- This news comes only days after a strong cycle in the optical technologies sector was forecast.
- Other optical makers falling today include Lumentum Holdings (LITE -3.7%) NeoPhotonics Corporation (NPTN -4%), Fabrinet (FN -7.1%), Oclaro (OCLR -0.9%) and Ciena Corporation (CIEN -7.8%).
- Infinera earnings call transcript
Thu, Jul. 28, 9:16 AM
- Gainers: EVOK +31%. GRPN +29%. OCN +25%. ALR +20%. N +18%. ESI +15%. TPX +15%. GRUB +13%. LOGI +13%. VSTM +12%. CRUS +11%. ASPS +11%. CHCI +11%. EBIO +11%. AXTI +11%. VNR +9%. SPHS +9%. VGZ +8%. KONA +7%. CLF +6%. ARIA 6%. SPU 5%. YNDX 5%.
- Losers: INFN -32%. ARGS -18%. AVXL -10%. IVTY -10%. F -8%. CIEN -8%. CBD -8%. XCOM -7%. EXAS -6%. WFM -5%.
Wed, Jul. 27, 4:19 PM
Tue, Jul. 26, 5:35 PM
- ABCO, ABX, ACGL, AEM, AF, AGNC, AHL, ALEX, ALSN, AMCC, AMGN, ANIK, ARRS, ASGN, AXTI, BKCC, CA, CAKE, CBI, CBT, CDE, CMO, CMPR, CMRE, CNMD, COHR, CRUS, CSGP, CVTI, CW, CYS, DLB, DRE, ECHO, EFX, ELY, EQY, ESRT, ESV, EXR, FB, FBHS, FOE, FORR, GG, GPRO, GRPN, HOLX, HT, IAC, IBKC, INFN, INT, ISBC, KEX, KGC, KIM, KNL, KNX, KONA, KRA, KS, LLNW, LM, LOGI, LPSN, LRCX, MAA, MANT, MAR, MCK, MEOH, MKSI, MMLP, MMSI, MN, MOH, MUR, NATI, NE, NEU, NGD, NOW, NTGR, NTRI, NVDQ, NXPI, O, OCN, OI, ORLY, OTEX, PEIX, PPC, PSA, PXD, QDEL, QEP, QTM, RCII, ROIC, RRTS, SCI, SFLY, SIGI, SPRT, SPSC, SSNC, SU, TER, TILE, TIS, TMK, TMST, TTEK, TTMI, TYL, UNM, VAR, VNDA, VNR, VRTX, WFM, WFT, WIRE, WLL, WRE, WSR, XL, XLNX
Mon, Jul. 25, 12:44 PM
- Strong upward movement in Lumentum (LITE +8.3%), NeoPhotonics (NPTN +16.4%), Fabrinet (FN +8.1%), Oclaro (OCLR +5.4%) and Infinera (INFN +1.2%) on a Needham & Company report by analysts Alex Henderson, Quinn Bolton and James Ricchiuti.
- Upgraded each to a rating of Strong Buy from Buy.
- Lumentum price target of $40 up from $35 (current price $29.80), Fabrinet target of $48 up from $45 (current price $41.05), NeoPhotonics target of $18 up from $17 (current price $12.95), Oclaro target of $7.50 up from $7 (current price $5.50) and Infinera target of $20 (current price $12.24).
- From the report: "The bulk of the optical components industry is sold out, driven by strong demand out of China. The Metro Core market is just starting to ramp a multi-year build-out. Starting in CY3Q, the massive upgrade in Data Comm from 10G/40G to 25G/100G should kick in and ramp sharply into CY17 and CY18. Over the last 25 years, there has never been a cycle with three major drivers simultaneously."
- New China orders, sold-out conditions, metro network upgrades and server speed increases attributed to the bullish projections.
Fri, Jun. 3, 2:29 PM
- Networking vendor Infinera (NASDAQ:INFN) has eked out a decent gain this afternoon, up 0.8%, following Nomura's launch of coverage at Buy today.
- Jeffrey Kvaal put a $17 price target on the shares, implying 26% upside.
- The star of the company's story, he writes, is its supplying of cloud computing by selling into the "webscale" or "hyperscale" market, vs. a more traditional long-haul telecom market.
- "Infinera has had to serve the webscale market with a product designed for the long-haul telecom market, the DTN-X," Kvaal writes. "Even this product, though too slim for Tier 1 telcos, was over-engineered for the webscale players."
- The moves are shifting demand and slowing the company's market share gains in long haul, but cloud products should improve margins ahead: "Infinera has targeted long-term gross and operating margins of 50% and 15%, respectively. We see several drivers that will push the margin structure to and likely beyond 50% over time," including a cost-optimized Cloud Xpress offering and a still-growing installed base.
Thu, Apr. 28, 12:46 PM
Thu, Apr. 28, 9:16 AM| Thu, Apr. 28, 9:16 AM