Digital optical networking systems provider, Infinera Corporation (INFN), is set to release its third-quarter 2014 financial numbers after the closing bell on Oct 22.
In the last reported quarter, the company had delivered a robust 400% positive earnings surprise. Notably, the company has surpassed the Zacks Consensus in the trailing four quarters, with an average earnings beat of 199.1%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
The addition of DTN-X and DTN customers, the deal with SEACOM to install Infinera DTN-X platform across the former's terrestrial network in Africa and sustained focus on global footprint expansion are factors likely to impact the quarter favorably.
Earnings Whispers?
Our proven model does not conclusively show that Infinera is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Infinera currently has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents.
Zacks Rank: Infinera carries a Zacks Rank #1 (Strong Buy). Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter.
Riverbed Technology, Inc. (RVBD) has an earnings ESP of +5.26% and carries a Zacks Rank #3 (Hold).
Silver Spring Networks, Inc. (SSNI) has an earnings ESP of +10.53% and carries a Zacks Rank #3.
DragonWave Inc. (DRWI) has an earnings ESP of +16.67% and carries a Zacks Rank #3.
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