Infinera (NASDAQ:INFN) shares surged in early trading today after the optical networking and semiconductor solutions provider reaffirmed certain preliminary Q3 result ranges. It also provided an update on its steps to regain compliance with Nasdaq’s listing requirements.
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Infinera now expects preliminary revenue and EPS for the third quarter to be within the range of or exceed its earlier outlook. Buoyed by strong bookings, the company anticipates its preliminary fourth-quarter revenue and EPS to be within or exceed its previous outlook range. In November, the company had anticipated revenue of $421 million to $451 million and an EPS of $0.05 to $0.13 for the fourth quarter. Analysts expect the company to generate an EPS of $0.09 on revenue of $437 million.
In addition, Infinera received a delinquency notice from Nasdaq in November after the company failed to file its Form 10-Q for the third quarter on time. The company is working towards filing its Form 10-Q as soon as possible. Additionally, on January 9, it submitted a plan of compliance to Nasdaq outlining how it intends to regain compliance with the exchange’s listing requirements.
Is Infinera a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on Infinera. After a nearly 35% slide in the company’s share price over the past year, the average INFN price target of $7.63 implies a mouth-watering 66.6% potential upside in the stock.
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