Infinera Corp. (INFN) Estimates And PT Cut - Needham & Company

Needham & Company analyst, Alex Henderson, cut estimates on Infinera Corp. (NASDAQ: INFN) after a disappointing guide for the June quarter. The majority of the problem appears to be at Transmode, where one of Transmode’s top customers stopped purchasing, temporarily causing a hole in the numbers. No change to Buy rating but the PT goes to $20.

CY16 revenues drop to $1.05B from $1.11B - Street at $1.12B

CY16 EPS to $0.83 from $0.94 - Street $0.92

The analyst thinks this is an INFN-specific problem that does not reflect on the component names. He also prefers components companies to systems companies since the systems companies only participate in one of the three main drivers in the Optical Cycle. The Systems names benefit from the back half ramp in Metro Core, but do not participate in the Data Comm upgrade cycle ramping in CY2H nor do they benefit from the exceptionally strong demand out of China.

Price Target is cut from $25 to $20.

For an analyst ratings summary and ratings history on Infinera Corp. click here. For more ratings news on Infinera Corp. click here.

Shares of Infinera Corp. closed at $15.57 yesterday.

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