Why Infinera Plunged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Infinera (NAS: INFN) plunged today by as much as 10% after the company reported earnings that missed expectations.
So what: Revenue in the second quarter came in at $93.5 million, looking short compared with both the $96.2 million consensus and the $96 million in sales a year ago. The bottom line came in on target, but that target included red ink to the tune of $0.16 per share.
Now what: CEO Tom Fallon said the company made good on its commitment to deliver its DTN-X product to market and finished customer trials. The platform is now shipping for deployment, and reception so far has been positive. Infinera has purchase commitments in hand from 10 customers for the offering and will begin recognizing revenue on those sales in the third quarter. As with many IT plays, concerns linger over the broader macro environment and capital spending.
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The article Why Infinera Plunged originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool owns shares of Infinera.Motley Fool newsletter serviceshave recommended buying shares of Infinera. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.