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What to Expect Ahead of Ciena's (CIEN) Q2 Earnings Release?
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Ciena Corporation (CIEN - Free Report) is scheduled to report second-quarter fiscal 2022 results on Jun 2.
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 54 cents, suggesting a decline of 12.9% from the year-ago quarter’s levels.
For the fiscal second quarter, management anticipates revenues between $930 million and $970 million. The Zacks Consensus Estimate for revenues is pegged at $952.9 million, up 14.3% from the year-ago quarter’s levels.
The company has a trailing four-quarter earnings surprise of 11.1%, on average.
Shares of Ciena have lost 6.6% of their value in the past year against the industry's return of 6.8%.
Increasing cloud migration and rising demand for higher capacity and bandwidth and proliferation of edge applications is likely to have driven demand for Ciena’s diversified product portfolio in the fiscal second quarter.
Ciena is witnessing strong momentum for its WaveLogic 5 Extreme solution. In the last reported quarter, the company added 16 new customers for its WaveLogic 5 Extreme solution. The company also added that revenues from its flagship 6500 platform surged 20% year over year in the quarter.
Ciena’s routing and switching solutions are likely to have witnessed strong uptake. The contribution from the Vyatta platform, which Ciena acquired from AT&T in 2021, is likely to have favored this business segment. The buyout reflects Ciena’s investment in its Routing and Switching roadmap to address the growing market opportunity to transform the edge, including 5G networks and a cloud environment.
The company continues to win deals for its solutions in next-generation metro and edge use cases. Incremental gains from the healthy performance of its software automation business, especially Blue Planet Software and Services, are likely to have favored the top line.
Also, Ciena’s submarine business remains strong. In March 2022, Ciena announced that The Eastern Africa Submarine Cable System or EASSy is deploying the company’s GeoMesh Extreme solution to boost the capacity of its submarine cable system. This would help Ciena meet the increasing demand and improve connectivity to the Americas, the Middle East, Europe and Southeast Asia.
EASSy’s submarine system extends from Africa’s east to south coast for about 10,000 kilometers. The GeoMesh solution will enable EASSy to double the network capacity from 18 terabit/second (or Tb/s) to 36Tb/s across the system. This will help maintain speed with continuing bandwidth growth.
Strong order flow and a higher backlog amid a robust demand environment are likely to have acted as other tailwinds.
Higher expenses on product development amid stiff competition in the networking space might have limited margin expansion in the to-be-reported quarter.
Pandemic-induced protracted global supply chain disruptions, component shortages and related higher costs remain major concerns.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Ciena has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Designer Brands is set to release first-quarter fiscal 2022 results on Jun 2. The Zacks Consensus Estimate for earnings is pegged at 23 cents per share, suggesting an increase of 92% from the prior-year quarter’s reported figure. Shares of DBI have decreased 9% in the past year.
Coupa Software Incorporated ) has an Earnings ESP of +7.02% and a Zacks Rank of 3.
Coupa Software is scheduled to release first-quarter fiscal 2023 results on Jun 6. The Zacks Consensus Estimate for earnings is pegged at a loss of 57 cents per share. Shares of COUP have decreased 70.6% in the past year.
Samsara Inc. (IOT - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank of 2.
Samsara is scheduled to release first-quarter fiscal 2023 results on Jun 2. The Zacks Consensus Estimate for earnings is pegged at loss of 6 cents. Shares of IOT have declined 60% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What to Expect Ahead of Ciena's (CIEN) Q2 Earnings Release?
Ciena Corporation (CIEN - Free Report) is scheduled to report second-quarter fiscal 2022 results on Jun 2.
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 54 cents, suggesting a decline of 12.9% from the year-ago quarter’s levels.
For the fiscal second quarter, management anticipates revenues between $930 million and $970 million. The Zacks Consensus Estimate for revenues is pegged at $952.9 million, up 14.3% from the year-ago quarter’s levels.
The company has a trailing four-quarter earnings surprise of 11.1%, on average.
Shares of Ciena have lost 6.6% of their value in the past year against the industry's return of 6.8%.
Ciena Corporation Price and EPS Surprise
Ciena Corporation price-eps-surprise | Ciena Corporation Quote
Factors to Note
Increasing cloud migration and rising demand for higher capacity and bandwidth and proliferation of edge applications is likely to have driven demand for Ciena’s diversified product portfolio in the fiscal second quarter.
Ciena is witnessing strong momentum for its WaveLogic 5 Extreme solution. In the last reported quarter, the company added 16 new customers for its WaveLogic 5 Extreme solution. The company also added that revenues from its flagship 6500 platform surged 20% year over year in the quarter.
Ciena’s routing and switching solutions are likely to have witnessed strong uptake. The contribution from the Vyatta platform, which Ciena acquired from AT&T in 2021, is likely to have favored this business segment. The buyout reflects Ciena’s investment in its Routing and Switching roadmap to address the growing market opportunity to transform the edge, including 5G networks and a cloud environment.
The company continues to win deals for its solutions in next-generation metro and edge use cases. Incremental gains from the healthy performance of its software automation business, especially Blue Planet Software and Services, are likely to have favored the top line.
Also, Ciena’s submarine business remains strong. In March 2022, Ciena announced that The Eastern Africa Submarine Cable System or EASSy is deploying the company’s GeoMesh Extreme solution to boost the capacity of its submarine cable system. This would help Ciena meet the increasing demand and improve connectivity to the Americas, the Middle East, Europe and Southeast Asia.
EASSy’s submarine system extends from Africa’s east to south coast for about 10,000 kilometers. The GeoMesh solution will enable EASSy to double the network capacity from 18 terabit/second (or Tb/s) to 36Tb/s across the system. This will help maintain speed with continuing bandwidth growth.
Strong order flow and a higher backlog amid a robust demand environment are likely to have acted as other tailwinds.
Higher expenses on product development amid stiff competition in the networking space might have limited margin expansion in the to-be-reported quarter.
Pandemic-induced protracted global supply chain disruptions, component shortages and related higher costs remain major concerns.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Ciena has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Designer Brands (DBI - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Designer Brands is set to release first-quarter fiscal 2022 results on Jun 2. The Zacks Consensus Estimate for earnings is pegged at 23 cents per share, suggesting an increase of 92% from the prior-year quarter’s reported figure. Shares of DBI have decreased 9% in the past year.
Coupa Software Incorporated ) has an Earnings ESP of +7.02% and a Zacks Rank of 3.
Coupa Software is scheduled to release first-quarter fiscal 2023 results on Jun 6. The Zacks Consensus Estimate for earnings is pegged at a loss of 57 cents per share. Shares of COUP have decreased 70.6% in the past year.
Samsara Inc. (IOT - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank of 2.
Samsara is scheduled to release first-quarter fiscal 2023 results on Jun 2. The Zacks Consensus Estimate for earnings is pegged at loss of 6 cents. Shares of IOT have declined 60% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.