INFN Earnings Prediction
The chart below shows how INFN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INFN sees a +0.65% change in stock price 10 days leading up to the earnings, and a +0.72% change 10 days following the report. On the earnings day itself, the stock moves by +0.58%. This data can give you a slight idea of what to expect for the next quarter's release.
INFN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
453.46M
-6.68%
15.57%
Gross Margin
38.56%
5.88%
-2.60%
Operating Margin
3.88%
-27.34%
89.27%
Net Margin
2.84%
-58.78%
-218.33%
EPS
0.06
-60.00%
-250.00%
No Data Available
INFN Earnings Analysis
Infinera Corporation Corporation (INFN.O) Earnings Conference Call
Positive
- Infinera's fourth quarter performance was strong, with revenue, gross margin, and EPS all expected to come in above outlook ranges.
- The company delivered a book-to-bill ratio of approximately one for the second quarter in a row and generated over $50 million in free cash flow.
- The GX Systems portfolio performed strongly, landing new Tier 1 design wins with global service providers and ICPs, representing almost 50% of expected annual product revenue.
- Infinera expects to deliver its sixth consecutive year of revenue growth in full-year 2023.
- The company expanded gross margins to approximately 40% and increased operating profit in the double-digit percentage range.
- EPS growth is expected to be in the 20% to 25% range, up at least 70% year-over-year, demonstrating consistent financial progress.
- In 2023, Infinera achieved significant milestones and strategic wins across various market segments and geographies.
- Notable wins with major service providers in the U.S., Europe, India, Australia, and multinational subsea consortiums.
- Fourth consecutive year of 30-plus revenue growth in the U.S. hyperscaler segment, with increased market share by approximately 1,000 basis points over the last four years.
- Exceeded bookings of $10 million for Subsystems products, with purchase orders from 26 customers, and expanded membership in the XR Forum.
- Infinera announced the commercial availability of its 400 gig XR pluggables and first shipped Metro systems with vertically integrated pluggables in Q4.
- Qualifying 400 gig ICE-X pluggables with a major Tier 1 service provider and U.S. cable MSO for various applications, driving margin expansion.
- Investment in producing the first test chips for inside data center applications, leveraging unique vertical integration and indium phosphide capabilities for competitive differentiation.
- Despite expecting a slow start in the first half of 2024 due to inventory digestion and mix impacts, Infinera remains confident in its long-term strategy and growth prospects.
- Recent strategic wins with hyperscalers and major service providers, including important line system and pluggable contracts.
- Confidence in delivering a full year of revenue growth and expanded margins in 2024, with gross margins expected to return to 40% plus starting in Q2.
Negative
- Revenue for the first quarter of 2024 is expected to be in the range of $320 million to $350 million, including the impact of approximately $35 million of revenue that shifted out of the quarter, indicating a slow start to the year.
- Gross margin for the first quarter is projected to be in the range of 36% to 38%, with a 400 basis point margin impact primarily from higher line system shipments in Q1 and lower volumes, indicating a decrease compared to previous quarters.
- Operating margin for the first quarter is expected to result in a loss of 8.5%, reflecting challenges in managing operating expenses efficiently in the short term.
- Net loss per share for the first quarter is anticipated to be between $0.18 to $0.10, assuming a basic share count of approximately 232 million shares, highlighting a potential downturn in profitability compared to previous quarters.
