Earnings Outlook for Infinera

Infinera INFN announces its next round of earnings this Tuesday, May 04. Here is Benzinga's look at Infinera's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Infinera EPS loss is expected to be around $0.06, according to sell-side analysts. Sales will likely be near $331.49 million. Infinera reported a per-share loss of $0.27 when it published results during the same quarter last year. Sales in that period totaled $331.38 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 77.78%. Revenue would be have grown 0.03% from the same quarter last year. Infinera's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Infinera were trading at $9.22 as of April 30. Over the last 52-week period, shares are up 56.33%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Infinera is scheduled to hold the call at 17:00:00 ET and can be accessed here.