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NEW YORK (TheStreet) -- Shares of Infinera (INFN) - Get Infinera Corporation Report were gaining 10.9% to $20.30 with heavy trading volume on Wednesday after the communication equipment company beat analysts' estimates for the third quarter.

On Tuesday, Infinera reported earnings of 22 cents a share for the third quarter, above analysts' estimates of 17 cents a share for the quarter. Revenue grew by 12.5% year over year to $232.47 million for the quarter, beating analysts' estimates of $225.15 million.

Product revenue grew to $202.37 million for the third quarter from $147.18 million for the year-ago quarter. Services revenue grew to $30.1 million from $26.38 million for the third quarter of 2014.

Infinera noted that the financial results include its recent acquisition of Transmode, which closed on August 20.

"Our excellent third quarter results reflect continued strength across our core business, including growing Cloud Xpress revenues as well as the initial contribution from the new metro business," CEO Tom Fallon said in a statement. "Adding the recently announced metro core and long haul interconnect products along with Transmode's suite of metro solutions enables Infinera to further enhance the superior experience we deliver to our customers."

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About 3.5 million shares of Infinera were traded by 11:29 a.m. Wednesday, above the company's average trading volume of about 2 million shares a day.

TheStreet Ratings team rates INFINERA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate INFINERA CORP (INFN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.|

You can view the full analysis from the report here: INFN

INFN data by YCharts

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