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Ciena (CIEN) to Post Q1 Earnings: Here's What to Expect
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Ciena Corporation (CIEN - Free Report) is scheduled to report first-quarter fiscal 2024 results on Mar 7.
The Zacks Consensus Estimate for earnings is pegged at 46 cents per share, suggesting a 28.1% decrease from the year-ago level.
For the first quarter of fiscal 2024, management expects revenues in the range of $980 million-$1.06 billion.
The consensus estimate for revenues is pegged at $1.02 billion, indicating a decline of 3.6% from the prior-year level.
CIEN has a trailing four-quarter earnings surprise of 30.7%, on average. Shares of Ciena have gained 3.8% in the past year compared with the sub-industry's growth of 3.7%.
CIEN’s performance in the fiscal first quarter is likely to have been affected by rising customer inventory levels owing to reduced spending by buyers amid economic troubles. Apart from this, reduced lead times from its service provider customers, especially in North America, is a headwind.
Volatile supply-chain dynamics and related higher logistics costs remain concerns. Inflation and higher expenses on product development amid stiff competition in the networking space might have further limited margin expansion in the quarter under review.
CIEN is one of the leading providers of optical networking equipment, software and services. The company’s performance is likely to have been driven by increased network traffic, demand for bandwidth and the adoption of cloud architectures.
In addition to increasing demand for its solutions in the 5G, cloud, AI and automation space, CIEN is investing extensively to grab opportunities in fast-growing markets in the next-gen metro and edge solutions. Ciena is witnessing strong momentum for its WaveLogic 5 Extreme and 6500 RLS, which is being driven by cloud provider network expansions.
CIEN’s routing and switching solutions are likely to have witnessed strong uptake. In the fiscal first quarter, the company added 40 new customers for routing and switching, increasing the overall customer count to more than 300. For the fiscal first quarter, we expect revenues from routing and switching solutions to be $122.7 million, up 2.7% year over year.
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. This is not the case here.
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.
The Zacks Consensus Estimate for earnings is pegged at 20 cents per share, suggesting an increase of 126.6% from the prior-year quarter’s reported figure. The Gap’s shares have lost 8.8% year to date.
Guidewire Software (GWRE - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3 at present. Guidewire is set to announce second-quarter fiscal 2024 results on Mar 7.
The Zacks Consensus Estimate for earnings is pegged at 21 cents per share, suggesting an increase of 200% from the prior-year quarter’s reported figure. GWRE’s shares have gained 7.1% year to date.
NIKE (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank #3. NKE is set to report its third-quarter fiscal 2024 results on Mar 21.
The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, suggesting a decrease of 11.4% from the prior-year quarter’s reported figure. NKE’s shares have lost 17.2% year to date.
Image: Bigstock
Ciena (CIEN) to Post Q1 Earnings: Here's What to Expect
Ciena Corporation (CIEN - Free Report) is scheduled to report first-quarter fiscal 2024 results on Mar 7.
The Zacks Consensus Estimate for earnings is pegged at 46 cents per share, suggesting a 28.1% decrease from the year-ago level.
For the first quarter of fiscal 2024, management expects revenues in the range of $980 million-$1.06 billion.
The consensus estimate for revenues is pegged at $1.02 billion, indicating a decline of 3.6% from the prior-year level.
CIEN has a trailing four-quarter earnings surprise of 30.7%, on average. Shares of Ciena have gained 3.8% in the past year compared with the sub-industry's growth of 3.7%.
Ciena Corporation Price and EPS Surprise
Ciena Corporation price-eps-surprise | Ciena Corporation Quote
Factors to Note
CIEN’s performance in the fiscal first quarter is likely to have been affected by rising customer inventory levels owing to reduced spending by buyers amid economic troubles. Apart from this, reduced lead times from its service provider customers, especially in North America, is a headwind.
Volatile supply-chain dynamics and related higher logistics costs remain concerns. Inflation and higher expenses on product development amid stiff competition in the networking space might have further limited margin expansion in the quarter under review.
CIEN is one of the leading providers of optical networking equipment, software and services. The company’s performance is likely to have been driven by increased network traffic, demand for bandwidth and the adoption of cloud architectures.
In addition to increasing demand for its solutions in the 5G, cloud, AI and automation space, CIEN is investing extensively to grab opportunities in fast-growing markets in the next-gen metro and edge solutions. Ciena is witnessing strong momentum for its WaveLogic 5 Extreme and 6500 RLS, which is being driven by cloud provider network expansions.
CIEN’s routing and switching solutions are likely to have witnessed strong uptake. In the fiscal first quarter, the company added 40 new customers for routing and switching, increasing the overall customer count to more than 300. For the fiscal first quarter, we expect revenues from routing and switching solutions to be $122.7 million, up 2.7% year over year.
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. This is not the case here.
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.
The Gap (GPS - Free Report) has an Earnings ESP of +54.71% and a Zacks Rank #1 at present. GPS is set to report its fourth-quarter 2023 results on Mar 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for earnings is pegged at 20 cents per share, suggesting an increase of 126.6% from the prior-year quarter’s reported figure. The Gap’s shares have lost 8.8% year to date.
Guidewire Software (GWRE - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3 at present. Guidewire is set to announce second-quarter fiscal 2024 results on Mar 7.
The Zacks Consensus Estimate for earnings is pegged at 21 cents per share, suggesting an increase of 200% from the prior-year quarter’s reported figure. GWRE’s shares have gained 7.1% year to date.
NIKE (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank #3. NKE is set to report its third-quarter fiscal 2024 results on Mar 21.
The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, suggesting a decrease of 11.4% from the prior-year quarter’s reported figure. NKE’s shares have lost 17.2% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.