Benzinga | Feb 22, 2021 10:09AM EST

Infinera Earnings Preview

Infinera (NASDAQ:INFN) announces its next round of earnings this Tuesday, February 23. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

Net Income, Earnings, 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

Analysts covering Infinera modeled for quarterly EPS of $0.02 on revenue of $356.79 million. In the same quarter last year, Infinera reported EPS of $0.03 on revenue of $386.46 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 33.33%. Revenue would have fallen 7.68% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.06 -0.14 -0.18 -0.02EPS Actual 0.02 -0.09 -0.27 0.03Revenue Estimate 335.91 M 319.24 M 318.31 M 365.68 MRevenue Actual 341.25 M 332.64 M 331.38 M 386.46 M

Stock Performance

Shares of Infinera were trading at $10.65 as of February 19. Over the last 52-week period, shares are up 31.6%. 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.