NEW YORK (TheStreet) -- Shares of Infinera (INFN) - Get Report were falling 11.54% to $8.16 on heavy trading volume mid-Thursday afternoon after issuing downbeat guidance for the 2016 fourth quarter. 

After yesterday's market close, the Sunnyvale, CA-based maker of high capacity optical transmission equipment said it expects to report an adjusted loss of 14 cents per share in the current quarter. Infinera anticipates fourth-quarter revenue of $175 million, plus or minus $10 million.

Analysts surveyed by FactSet are looking for an adjusted loss of 11 cents per share on $177 million in revenue.

"Although several of the dynamics we thought would begin to improve in Q4 have in fact improved, we are facing the difficult situation whereby customers not only don't have incremental year-end money, but are also delaying purchases to next year as they have burned through their annual budgets early and are unable to get additional funding approved," CFO Brad Feller said on the conference call.

For the 2016 third quarter, Infinera reported adjusted earnings of 5 cents per share on $185.5 million in revenue. Analysts were modeling breakeven earnings on $185.5 million in revenue.

About 6.06 million shares of Infinera have been traded so far today, well above the company's average trading volume of roughly 1.68 million shares a day. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Infinera's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.

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

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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