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 & Revenues Miss Estimates, Down Y/Y
Read MoreHide Full Article
Ciena Corporation (CIEN - Free Report) reported tepid third-quarter fiscal 2022 (ended Jul 30, 2022) results, with adjusted earnings of 33 cents per share missing the Zacks Consensus Estimate by 5.7% and declining 64% year over year.
Quarterly total revenues were down 12.2% year over year to $868 million, owing to negative impact from late delivery and significantly “lower-than-committed” volume from a small number of suppliers for specific components noted Ciena. The top line missed the consensus mark of $907.8 million. Widespread supply chain issues will remain an overhang in the current quarter but are likely to improve in fiscal 2023, stated Ciena.
Region-wise, revenues in the Americas were $617.4 million, down 10.9% year over year. Revenues in Europe, the Middle East and Africa were $124.1 million, down 34.4% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $126.4 million, up 19.1% from the prior-year quarter’s tally.
Ciena Corporation Price, Consensus and EPS Surprise
The Hanover, MD-based networking systems and services company’s shares dropped 10.4% on Sep 1, closing the session at $45.48. However, shares are up 0.8% in premarket trading on Sep 2. In the past year, the stock has lost 20.1% of their value compared with the industry’s decline of 20.3%.
Image Source: Zacks Investment Research
Segment Results
Total revenues in Networking Platforms (76.6% of total revenues) fell 15% year over year to 664.6 million.
Platform Software and Services revenues (7.3% of total revenues)totaled $63.5 million, up 11.6% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services revenues (2% of total revenues) increased 4.2% to $17.3 million.
Total revenues in Global Services (14.1% of total revenues) were $122.6 million, down 7.1% year over year.
Other Details
Non-GAAP adjusted gross margin was 40% compared with 48.5% in the year-ago quarter, significantly affected by supply chain-driven higher component costs and logistics expenses. Adjusted operating expenses were $273.1 million, down 6% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 8.5% compared with 19.1% in the prior-year quarter. Non-GAAP adjusted EBITDA declined 55.1% year over year to $96 million.
The company repurchased approximately 3.2 million shares worth $155 million in the fiscal third quarter as part of the $1 billion stock repurchase program. Ciena repurchased $500 million worth of shares in fiscal 2022.
Cash Flow & Liquidity
During the nine months ended Jul 30, 2022, Ciena’s net cash used by operating activities was $153.2 million compared with $286.8 million of cash provided by operating activities in the comparable period in the last fiscal year.
As of Jul 30, 2022, the company had 1.3 billion in cash and investments and $1,062.5 million of net long-term debt.
Guidance
For the fiscal fourth quarter, the company expects revenues of $800-$880 million. Adjusted gross margin is estimated to be nearly 40%. Adjusted operating expenses are estimated to be in the range of $315 million. The outlook is driven by the uncertainty stemming from supply chain troubles.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 2.7% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 10.2% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 29.2% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ciena (CIEN) Q3 Earnings & Revenues Miss Estimates, Down Y/Y
Ciena Corporation (CIEN - Free Report) reported tepid third-quarter fiscal 2022 (ended Jul 30, 2022) results, with adjusted earnings of 33 cents per share missing the Zacks Consensus Estimate by 5.7% and declining 64% year over year.
Quarterly total revenues were down 12.2% year over year to $868 million, owing to negative impact from late delivery and significantly “lower-than-committed” volume from a small number of suppliers for specific components noted Ciena. The top line missed the consensus mark of $907.8 million. Widespread supply chain issues will remain an overhang in the current quarter but are likely to improve in fiscal 2023, stated Ciena.
Region-wise, revenues in the Americas were $617.4 million, down 10.9% year over year. Revenues in Europe, the Middle East and Africa were $124.1 million, down 34.4% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $126.4 million, up 19.1% from the prior-year quarter’s tally.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation price-consensus-eps-surprise-chart | Ciena Corporation Quote
The Hanover, MD-based networking systems and services company’s shares dropped 10.4% on Sep 1, closing the session at $45.48. However, shares are up 0.8% in premarket trading on Sep 2. In the past year, the stock has lost 20.1% of their value compared with the industry’s decline of 20.3%.
Image Source: Zacks Investment Research
Segment Results
Total revenues in Networking Platforms (76.6% of total revenues) fell 15% year over year to 664.6 million.
Platform Software and Services revenues (7.3% of total revenues)totaled $63.5 million, up 11.6% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services revenues (2% of total revenues) increased 4.2% to $17.3 million.
Total revenues in Global Services (14.1% of total revenues) were $122.6 million, down 7.1% year over year.
Other Details
Non-GAAP adjusted gross margin was 40% compared with 48.5% in the year-ago quarter, significantly affected by supply chain-driven higher component costs and logistics expenses. Adjusted operating expenses were $273.1 million, down 6% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 8.5% compared with 19.1% in the prior-year quarter. Non-GAAP adjusted EBITDA declined 55.1% year over year to $96 million.
The company repurchased approximately 3.2 million shares worth $155 million in the fiscal third quarter as part of the $1 billion stock repurchase program. Ciena repurchased $500 million worth of shares in fiscal 2022.
Cash Flow & Liquidity
During the nine months ended Jul 30, 2022, Ciena’s net cash used by operating activities was $153.2 million compared with $286.8 million of cash provided by operating activities in the comparable period in the last fiscal year.
As of Jul 30, 2022, the company had 1.3 billion in cash and investments and $1,062.5 million of net long-term debt.
Guidance
For the fiscal fourth quarter, the company expects revenues of $800-$880 million. Adjusted gross margin is estimated to be nearly 40%. Adjusted operating expenses are estimated to be in the range of $315 million. The outlook is driven by the uncertainty stemming from supply chain troubles.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Cadence and Arista sport a Zacks Rank #1 (Strong Buy) while Badger Meter 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 CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 2.7% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 10.2% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 29.2% in the past year.