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What to Expect Ahead of Ciena's (CIEN) Q3 Earnings Release?
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Ciena Corporation (CIEN - Free Report) is scheduled to report third-quarter fiscal 2022 results on Sep 1.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 35 cents, suggesting a decline of 62% from the year-ago quarter’s levels.
For the fiscal third quarter, management anticipates revenues between $870 million and $930 million. The Zacks Consensus Estimate for revenues is pegged at $907.8 million, indicating a decline of 8.2% from the year-ago quarter’s levels.
The company has a trailing four-quarter earnings surprise of 2%, on average.
Shares of Ciena have decline 6.4% in the past year against the industry's decline of 6.7%.
Image Source: Zacks Investment Research
Factors to Note
Increasing cloud adoption 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 third quarter. Strong order flow and a higher backlog amid a robust demand environment are likely to have acted as other tailwinds.
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, is likely to have favored the segment.
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 WaveLogic 5 Extreme solution surged 50% year over year in the quarter.
In July 2022, Ciena’s Waveserver 5 platform, powered by WL5e coherent optics, was deployed by Brazil-based Alloha Fibra group’s subsidiary Mob Telecom (Mob). Mob will integrate Ciena’s platforms to provide bandwidth connectivity up to 800Gb/s per channel across several data centers and four cable landing stations in Fortaleza, Brazil.
In June 2022, Ciena’s 6500, WL5e coherent optical solution and Manage, Control and Plan (MCP) domain controller was leveraged by MSA Resources Sdn Bhd (“MSAR”) to build the Digital Super Highway Network. The company’s WL5e coherent optical solution was used by Media Commerce amid increasing bandwidth demand.
Also, the company continues to win deals for its solutions in next-gen metro and edge use cases. Incremental gains from the healthy performance of its software automation business, especially Blue Planet Software, are likely to have favored the top line.
Lingering global supply chain disruptions, component shortages and related higher logistics costs are likely to have affected revenue and margin performance. Higher expenses on product development amid stiff competition in the networking space might further have limited margin expansion in the to-be-reported quarter.
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 #4 (Sell). 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 that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Campbell Soup is set to release fourth-quarter fiscal 2022 results on Sep 1. The Zacks Consensus Estimate for earnings is pegged at 56 cents per share, suggesting an increase of 1.8% from the prior-year quarter’s reported figure. Shares of CPB have increased 23.7% in the past year.
Casey General Stores (CASY - Free Report) has an Earnings ESP of +24.88% and a Zacks Rank of 3 at present.
Casey General Stores is scheduled to release first-quarter fiscal 2023 results on Sep 7. The Zacks Consensus Estimate for earnings is pegged at $3.32 per share, indicatin an increase of 4.1%. Shares of CASY have increased 6.3% in the past year.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 3.
Hormel Foods is scheduled to release third-quarter fiscal 2022 results on Sep 1. The Zacks Consensus Estimate for earnings is pegged at 41 cents per share, up 5.1% from the year-ago quarter’s levels. Shares of HRL have gained 12.8% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What to Expect Ahead of Ciena's (CIEN) Q3 Earnings Release?
Ciena Corporation (CIEN - Free Report) is scheduled to report third-quarter fiscal 2022 results on Sep 1.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 35 cents, suggesting a decline of 62% from the year-ago quarter’s levels.
For the fiscal third quarter, management anticipates revenues between $870 million and $930 million. The Zacks Consensus Estimate for revenues is pegged at $907.8 million, indicating a decline of 8.2% from the year-ago quarter’s levels.
Ciena Corporation Price and EPS Surprise
Ciena Corporation price-eps-surprise | Ciena Corporation Quote
The company has a trailing four-quarter earnings surprise of 2%, on average.
Shares of Ciena have decline 6.4% in the past year against the industry's decline of 6.7%.
Image Source: Zacks Investment Research
Factors to Note
Increasing cloud adoption 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 third quarter. Strong order flow and a higher backlog amid a robust demand environment are likely to have acted as other tailwinds.
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, is likely to have favored the segment.
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 WaveLogic 5 Extreme solution surged 50% year over year in the quarter.
In July 2022, Ciena’s Waveserver 5 platform, powered by WL5e coherent optics, was deployed by Brazil-based Alloha Fibra group’s subsidiary Mob Telecom (Mob). Mob will integrate Ciena’s platforms to provide bandwidth connectivity up to 800Gb/s per channel across several data centers and four cable landing stations in Fortaleza, Brazil.
In June 2022, Ciena’s 6500, WL5e coherent optical solution and Manage, Control and Plan (MCP) domain controller was leveraged by MSA Resources Sdn Bhd (“MSAR”) to build the Digital Super Highway Network. The company’s WL5e coherent optical solution was used by Media Commerce amid increasing bandwidth demand.
Also, the company continues to win deals for its solutions in next-gen metro and edge use cases. Incremental gains from the healthy performance of its software automation business, especially Blue Planet Software, are likely to have favored the top line.
Lingering global supply chain disruptions, component shortages and related higher logistics costs are likely to have affected revenue and margin performance. Higher expenses on product development amid stiff competition in the networking space might further have limited margin expansion in the to-be-reported quarter.
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 #4 (Sell). 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 that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Campbell Soup (CPB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Campbell Soup is set to release fourth-quarter fiscal 2022 results on Sep 1. The Zacks Consensus Estimate for earnings is pegged at 56 cents per share, suggesting an increase of 1.8% from the prior-year quarter’s reported figure. Shares of CPB have increased 23.7% in the past year.
Casey General Stores (CASY - Free Report) has an Earnings ESP of +24.88% and a Zacks Rank of 3 at present.
Casey General Stores is scheduled to release first-quarter fiscal 2023 results on Sep 7. The Zacks Consensus Estimate for earnings is pegged at $3.32 per share, indicatin an increase of 4.1%. Shares of CASY have increased 6.3% in the past year.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 3.
Hormel Foods is scheduled to release third-quarter fiscal 2022 results on Sep 1. The Zacks Consensus Estimate for earnings is pegged at 41 cents per share, up 5.1% from the year-ago quarter’s levels. Shares of HRL have gained 12.8% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.