Is It Time to Give up on Infinera Stock?
Infinera's (NASDAQ: INFN) stock recently tumbled after the optical solutions provider posted mixed first-quarter numbers. Its adjusted revenue rose 12% annually to $331.4 million, beating estimates by $13 milion. However, its adjusted net loss widened from $41.2 million to $49.4 million, or $0.27 per share, missing expectations by nine cents.
Infinera expects its adjusted revenue to rise 1%-8% annually in the second quarter, but it didn't provide any earnings guidance. CEO Tom Fallon admitted the macro headwinds were creating "visibility challenges for the second half of the year," but he remained "very optimistic" regarding Infinera's "medium and long term" opportunities.
Did investors overreact to Infinera's earnings miss? Or is it finally time to give up on this unloved stock, which has plunged nearly 80% over the past five years?
Source Fool.com
