Goldman Sachs Reiterates Infinera Rating Following Q3 Report

Infinera Corporation INFN reported strong 3Q revenue/non-GAAP EPS of $130mn/$0.18, well above Goldman Sachs' estimates of $125mn/$0.09 and the Street at $126mn/$0.09. “However, 4Q revenue guidance of $115-120mn was meaningfully below GS/Consensus at $128mn/$133mn, with EPS guidance of $0.02-$0.05 also significantly below GS/Consensus at $0.10/$0.11,” Goldman Sachs writes. “We reiterate our Sell rating on the stock despite the ~20% sell-off after hours, as we still see significant downside to estimates and to our $8.50 price target.” Infinera currently trades for $12.33.