Ciena Corporation’s ( CIEN Quick Quote CIEN - Free Report) coherent optical solutions are being used by India-based —Vodafone Idea Limited (VIL or Vi) as the telecom operator overhauls its network backbone scalability in the country.
Vi is one of the country’s largest telecom operators formed by the collaboration between Aditya Birla Group and Vodafone Group. The company provides data and voice services across 2G, 3G and 4G spectrum. Vi also boasts a 5G ready network in the country. Vi’s latest 300G/400G backbone network is aimed at enhancing scalability and performance while lowering costs.
Vi is using Ciena’s 6500 packet-optical platform that runs on WaveLogic 5 Extreme solution for high speed 300G/400G services, which can be upgraded to 800G, added Ciena. Using Ciena’s fifth-generation coherent optical solutions, Vi will be able to implement an advanced network to support upcoming technologies like cloud, Internet of Things and 5G.
Opportunities in the Telecom Space Bode Well
Ciena is a leading provider of optical networking equipment, software and services globally. The company is benefiting from increased network traffic, demand for bandwidth and the adoption of cloud architecture. Ciena’s focus on aiding carriers’ transition to next-generation networks places it in one of the fastest-growing segments of the telecom space.
Ciena Corporation Price and Consensus
partnered with Gulf Bridge International to boost the latter’s Smart Network capacity and performance on the back of its WaveLogic 5 Extreme-powered GeoMesh Extreme solution. This will improve the capacity of GBI’s Smart Network by 10 Tb/s across its regional and global network.
Prior to that, Telecom Egypt
leveraged Ciena’s WaveLogic 5 Extreme coherent optical technology. The deployment enhanced the network capacity of Telecom Egypt’s mesh network and the Mediterranean segment of Telecom Egypt’s Middle East North Africa submarine cable system. The GeoMesh Extreme submarine network solution enabled the company to minimize operational overheads and maximize savings in power, footprint and latency, added Ciena.
In the last reported quarter, Ciena’s revenues jumped 25.7% year over year to a record $1.042 billion and surpassed the consensus estimate of $1.031 billion. Ciena secured a dozen new contracts in the reported quarter, including significant multi-year deals with two of the largest U.S. Tier 1 service providers.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology sector include
Salesforce ( CRM Quick Quote CRM - Free Report) , Hewlett Packard ( HPE Quick Quote HPE - Free Report) and Microsoft ( MSFT Quick Quote MSFT - Free Report) . While Salesforce and Hewlett Packard sport a Zacks Rank #1 (Strong Buy), Microsoft 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 Salesforce’s fiscal 2022 earnings is pegged at $4.68 per share, up 6.4% in the past 60 days. The long-term earnings growth rate is pegged at 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 44.2%. Shares of CRM have increased 7.2% in the past year.
The Zacks Consensus Estimate for Hewlett Packard’s fiscal 2022 earnings is pegged at $2.03 per share, unchanged in the past 60 days. The long-term earnings growth rate is pegged at 5.8%.
Hewlett Packard’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 14.4%. Shares of HPE have rallied 39.4% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2022 earnings is pegged at $9.13 per share. The long-term earnings growth rate is pegged at 12%.
Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 14.8%. Shares of MSFT have surged 43.3% in the past year.