We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ciena (CIEN) Q3 Earnings: What's in the Cards this Time?
Read MoreHide Full Article
Ciena Corporation (CIEN - Free Report) is set to report third-quarter fiscal 2016 results on Sep 1. Last quarter, the company delivered a positive earnings surprise of 20.0%. The company delivered positive earnings surprises in three out of the last four fiscal quarters, bringing the average to a positive earnings surprise of 9.47%. Let’s see how things are shaping up for this announcement.
Factors to Consider
Ciena continues to benefit from strong demand for packet-optical transport and switching products, integrated network, and service management software. Higher spending on optical upgrade and a higher number of orders from international customers will likely boost its top line. Additionally, growing demand for cloud-based on-demand networking capabilities is also likely to bode well. Mobile bandwidth consumption is expected to rise phenomenally, thereby providing more growth opportunities to the company.
Currently, the company is one of the leading suppliers of 40G and 100G optical transport technology. In addition, the company is making efforts to expand its web scale IT architecture in the enterprise market by launching products like new chipsets, metro architecture and mobile backhaul solutions. We believe that Ciena’s strong product portfolio will boost its top line over the long run.
Ciena remains positive about its North America business where it expects revenues to grow in double digits in the second half of the current fiscal excluding contribution from AT&T.
In spite of all these encouraging factors, Ciena’s profitability can be affected by its leveraged balance sheet. Moreover, stiff competition from the company’s peers like Cisco (CSCO - Free Report) and Juniper Networks (JNPR - Free Report) among others remains a concern. Uncertain macroeconomic environment also remains an overhang.
Ciena expects third-quarter fiscal 2016 revenues in the range of $655 million to $685 million.
Our proven model does not conclusively show that Ciena will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Ciena has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 31 cents.
Zacks Rank: Ciena’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Here is a stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter:
Hewlett Packard Enterprise Company (HPE - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ciena (CIEN) Q3 Earnings: What's in the Cards this Time?
Ciena Corporation (CIEN - Free Report) is set to report third-quarter fiscal 2016 results on Sep 1. Last quarter, the company delivered a positive earnings surprise of 20.0%. The company delivered positive earnings surprises in three out of the last four fiscal quarters, bringing the average to a positive earnings surprise of 9.47%. Let’s see how things are shaping up for this announcement.
Factors to Consider
Ciena continues to benefit from strong demand for packet-optical transport and switching products, integrated network, and service management software. Higher spending on optical upgrade and a higher number of orders from international customers will likely boost its top line. Additionally, growing demand for cloud-based on-demand networking capabilities is also likely to bode well. Mobile bandwidth consumption is expected to rise phenomenally, thereby providing more growth opportunities to the company.
Currently, the company is one of the leading suppliers of 40G and 100G optical transport technology. In addition, the company is making efforts to expand its web scale IT architecture in the enterprise market by launching products like new chipsets, metro architecture and mobile backhaul solutions. We believe that Ciena’s strong product portfolio will boost its top line over the long run.
Ciena remains positive about its North America business where it expects revenues to grow in double digits in the second half of the current fiscal excluding contribution from AT&T.
In spite of all these encouraging factors, Ciena’s profitability can be affected by its leveraged balance sheet. Moreover, stiff competition from the company’s peers like Cisco (CSCO - Free Report) and Juniper Networks (JNPR - Free Report) among others remains a concern. Uncertain macroeconomic environment also remains an overhang.
Ciena expects third-quarter fiscal 2016 revenues in the range of $655 million to $685 million.
CIENA CORP Price and EPS Surprise
CIENA CORP Price and EPS Surprise | CIENA CORP Quote
Earnings Whispers
Our proven model does not conclusively show that Ciena will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Ciena has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 31 cents.
Zacks Rank: Ciena’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Here is a stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter:
Hewlett Packard Enterprise Company (HPE - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>