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Ciena (CIEN) Q3 Earnings & Revenues Top Estimates, Rise Y/Y
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Ciena Corporation (CIEN - Free Report) reported third-quarter fiscal 2023 (ended Jul 29) results, wherein adjusted earnings per share (EPS) of 59 cents beat the Zacks Consensus Estimate of 53 cents. Earnings improved 78.8% year over year.
Quarterly total revenues were up 23% year over year to $1,067.9 million. The top line surpassed the Zacks Consensus Estimate by 1.6%.
Non-telco customer revenues increased 46% year over year in the reported quarter. One customer represented 10% of total revenues in the fiscal third quarter.
Ciena Corporation Price, Consensus and EPS Surprise
Total revenues in Networking Platforms (79.2% of total revenues) increased 27.4% year over year to $846.6 million.
Platform Software and Services’ revenues (7.4%) totaled $78.9 million, up 24.2% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services’ revenues (1.3%) decreased 24.3% to $13.1 million.
Total revenues in Global Services (12.1%) were $129.3 million, up 5.5% year over year.
Region-wise, revenues in the Americas were $749.5 million, up 21.4% year over year. Europe, the Middle East and Africa generated $152.8 million revenues, up 23% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $165.6 million, up 31% from the prior-year quarter’s figure.
Other Details
Non-GAAP adjusted gross margin was 42.7% compared with 40% in the year-ago quarter. Adjusted operating expenses were $327.9 million, up 20.1% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin was 12% compared with 8.5% in the prior-year quarter. Non-GAAP adjusted EBITDA increased 57.6% year over year to $151.3 million.
Cash Flow & Liquidity
For the quarter that ended on Jul 29, 2023, Ciena’s net cash generated from operating activities was $9 million compared with net cash used from operating activities of $205 million in the prior-year quarter.
As of Jul 29, the company had $1.28 billion in cash and investments and $1,543.9 million of net long-term debt.
Guidance
For the fourth quarter of fiscal 2023, management expects revenues in the range of $1.06-$1.14 billion. The adjusted gross margin is estimated to be low to mid 40%. Adjusted operating expenses are estimated to be $335 million.
CIEN plans to repurchase shares worth $250 million in fiscal 2023.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 15.9% in the past 60 days to $4.15.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 26.1% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2024 EPS has increased 5.8% in the past 60 days to $6.58.
Aspen Technology’s long-term earnings growth rate is 17.1%. Shares of AZPN have declined 8% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 6.3% in the past 60 days to $2.86.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 61% in the past year.
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Ciena (CIEN) Q3 Earnings & Revenues Top Estimates, Rise Y/Y
Ciena Corporation (CIEN - Free Report) reported third-quarter fiscal 2023 (ended Jul 29) results, wherein adjusted earnings per share (EPS) of 59 cents beat the Zacks Consensus Estimate of 53 cents. Earnings improved 78.8% year over year.
Quarterly total revenues were up 23% year over year to $1,067.9 million. The top line surpassed the Zacks Consensus Estimate by 1.6%.
Non-telco customer revenues increased 46% year over year in the reported quarter. One customer represented 10% of total revenues in the fiscal third quarter.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation price-consensus-eps-surprise-chart | Ciena Corporation Quote
Segment Results
Total revenues in Networking Platforms (79.2% of total revenues) increased 27.4% year over year to $846.6 million.
Platform Software and Services’ revenues (7.4%) totaled $78.9 million, up 24.2% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services’ revenues (1.3%) decreased 24.3% to $13.1 million.
Total revenues in Global Services (12.1%) were $129.3 million, up 5.5% year over year.
Region-wise, revenues in the Americas were $749.5 million, up 21.4% year over year. Europe, the Middle East and Africa generated $152.8 million revenues, up 23% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $165.6 million, up 31% from the prior-year quarter’s figure.
Other Details
Non-GAAP adjusted gross margin was 42.7% compared with 40% in the year-ago quarter. Adjusted operating expenses were $327.9 million, up 20.1% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin was 12% compared with 8.5% in the prior-year quarter. Non-GAAP adjusted EBITDA increased 57.6% year over year to $151.3 million.
Cash Flow & Liquidity
For the quarter that ended on Jul 29, 2023, Ciena’s net cash generated from operating activities was $9 million compared with net cash used from operating activities of $205 million in the prior-year quarter.
As of Jul 29, the company had $1.28 billion in cash and investments and $1,543.9 million of net long-term debt.
Guidance
For the fourth quarter of fiscal 2023, management expects revenues in the range of $1.06-$1.14 billion. The adjusted gross margin is estimated to be low to mid 40%. Adjusted operating expenses are estimated to be $335 million.
CIEN plans to repurchase shares worth $250 million in fiscal 2023.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology space are Woodward (WWD - Free Report) , Aspen Technology (AZPN - Free Report) and Badger Meter (BMI - Free Report) . Woodward and Aspen Technology presently sport a Zacks Rank #1 (Strong Buy), whereas Badger Meter currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 15.9% in the past 60 days to $4.15.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 26.1% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2024 EPS has increased 5.8% in the past 60 days to $6.58.
Aspen Technology’s long-term earnings growth rate is 17.1%. Shares of AZPN have declined 8% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 6.3% in the past 60 days to $2.86.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 61% in the past year.