Infinera Shares Soar
Shares climbed $3.63 (35.6%) to $13.82 by mid-afternoon today.
The cause for the jubilation was obvious: Infinera's sales came in about 10 percent higher than consensus analyst estimates, and non-GAAP earnings beat the Street by 15 cents per share, according to Thomson Financial . (See Infinera Obliterates Q4 Estimates.)
The strong earnings prompted Jefferies & Company Inc. analyst George Notter to slap a Buy rating on Infinera in a research note this morning.
Notter cited the company's increased customer diversification, declining reliance on Level 3 Communications Inc. (NYSE: LVLT), and strong forecast as reasons for the upgrade.
Notter also sees the possibility of a future big-name carrier win. "It's logical that Tier 1 operators should also view Infinera's value proposition as positively as customers like Level 3, XO, Cox, and Global Crossing do," he writes.
— Ryan Lawler, Reporter, Light Reading