Preview into INFN's earnings

Investment Analysis Clubs Saul’s Investing Discussions
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Looks like we now have a few more data points to weave in as we formulate expectations on Infinera’s earnings.

  1. Juniper just reported earnings tonight. Shares were driven to new highs in AH trading after reporting a record quarter and stronger guidance.

http://seekingalpha.com/news/2851786-juniper-up-4_2-percent-…

In addition to beating Q3 estimates, Juniper (NYSE:JNPR) has guided for Q4 revenue of $1.29B (+/- $20M) and EPS of $0.57-$0.59, mostly above a consensus of $1.27B and $0.57

  1. Optical component maker Oclaro just raised their guidance on sales ahead of official reporting, stating strong growth in sales for their 100G components.

Infinera (NASDAQ:INFN) has been a tech standout today after optical component vendor Oclaro pre-announced above-consensus calendar Q3 sales, while stating it saw “strong growth in our 100G product portfolio” and better-than-expected 10G/40G sales. The Nasdaq is up 1.5%

http://seekingalpha.com/news/2849996-infinera-posts-5_3-perc…

  1. To further underscore how material and relevant this is, after doing a little digging I found out that Infinera and Alcatel-Lucent are primary customers of Oclaro.

http://www.fool.com/investing/general/2013/09/13/this-big-ne…

For years, Oclaro customers Alcatel-Lucent (NYSE: ALU ) and Infinera (NASDAQ: INFN ) have faced challenges in getting major telecom providers to commit to major equipment purchases.

  1. Heavy trading on November $18 options transpired today.

http://www.optionmonster.com/news/article.php?page=notable_o…

Infinera (INFN): More than 4,200 November 18 calls were bought, mostly for $1.40, as traders looked for the fiber-optic stock to rally. INFN rose 6.78 percent to $18.89.

The evidence is starting to look a bit stronger for another blowout quarter.

Best,
–Kevin

19 Likes
2

I guess I forgot to mention in point #1.

Juniper and Infinera are frequent “partner/providers” for network integrators. Here is a recent example from a very large deal:

https://www.infinera.com/nec-and-telenor-group-sign-a-global…

Best,
–Kevin

1 Like
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Good earnings for INFN mean a lot of long haul and metro fiber going in the ground. Who buries that fiber? Dycom, which as you know I like :wink:

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Good earnings for INFN mean a lot of long haul and metro fiber going in the ground. Who buries that fiber? Dycom, which as you know I like :wink:

Don’t you think a lot of that fiber would already be in the ground? When replacing or upgrading equipment you do not need to upgrade the fiber. I would look at the fiber to the home equipment, Calix, Adtran, Etc., and see how they are doing to project how Dycom will do.

Andy

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Dycom also does the last mile to the home. Your question is good and it depends on whether the current fiber and handle the bigger bandwidth. Dycom also installs the equipment in the “central office” of the phone companies. For the “Farmer’s internet” initiative, there is a lot of new fiber being run “out in the country”.