Infinera Misses Q4 Profit Estimates, But Nokia’s $2.3B Buyout Approval By EU Lifts Stock After-Hours: Retail Sentiment Split
Synopsis
Despite the mixed Q4 results, Infinera’s stock gained after-market as the company announced that it expects its merger with Nokia’s wholly-owned subsidiary, Neptune of America Corp., to be completed on or before Friday.
Shares of Infinera Corp. (INFN) edged up in after-hours trade on Thursday after the company announced its acquisition by Nokia Corp. (NOK) is expected to close on or before Friday. The company also posted its fourth-quarter earnings, which missed Wall Street estimates.
Infinera reported earnings per share (EPS) of $0.03 in Q4, missing expectations of $0.11. During the same period last year, it posted an EPS of $0.12.
The optical networking solutions provider reported revenue of $414.4 million during the quarter, ahead of an estimated $409.1 million. However, it fell 8.6% year-on-year (YoY) from $453.5 million a year earlier.
Infinera’s revenue in 2024 was $1.1 billion, down from $1.3 billion a year ago. It reported a loss per share of $0.19 in 2024, compared to an EPS of $0.23 in 2023.
Despite the mixed Q4 results, Infinera’s stock gained in extended trading as the company announced that it expects its merger with Nokia’s wholly-owned subsidiary, Neptune of America Corp., to be completed on or before Friday.
In the meantime, the European Union Commission unconditionally approved the $2.3 billion deal. This makes Nokia the second-largest optical networking vendor with a 20% market share, behind China’s Huawei.
On Stocktwits, retail sentiment around the Infinera stock was in the ‘neutral’ (53/100) territory, edging lower from ‘bullish’ a day ago.
On the other hand, retail investors were less optimistic about Nokia, with sentiment entering the ‘bearish’ (42/100) territory from ‘neutral’ a day ago.
One user pointed out that no one is talking about Nokia’s connectivity solutions reaching the moon.
Infinera’s stock has gained nearly 30% over the past year, while Nokia’s stock performed slightly better, with gains of nearly 36%.
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