Why Infinera (INFN) Stock Is Up Today

NEW YORK (TheStreet) -- Infinera (INFN) was gaining 6.45 to $9.38 Thursday after beating analysts' estimates for earnings and revenue in the first quarter.

For the first quarter Infinera reported earnings of 3 cents a share, beating analysts' expectations of a loss of 1 cent by 4 cents. Revenue grew 14.6% from the year-ago quarter to $142.81 million. Analysts surveyed by Thomson Reuters expected revenue of $140.46 million.

"Our first quarter performance was exceptionally strong in what is typically a soft quarter for our industry. We are benefitting from the continued investment cycle in 100G and network convergence. The favorable economics of our PIC-based architectures and the operational benefits of super-channels positions us as the industry recognized leader in the optical market," CEO Tom Fallon said in a press release.

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

"We rate INFINERA CORP (INFN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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