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Ciena Corporation (CIEN - Free Report) reported healthy fourth-quarter fiscal 2018 (ended Oct 31, 2018) results wherein both the top line and the bottom line surpassed the respective Zacks Consensus Estimate.
Net Income
On a GAAP basis, net income for the reported quarter was $64 million or 34 cents per share compared with $1,160.1 million or $7.32 per share in the year-ago quarter. The year-over-year decrease was primarily due to higher cost of goods sold and lower benefit from income tax. For fiscal 2018, net loss was $344.7 million or loss of $2.49 per share against income of $1,262 million or $7.53 per share a year ago, mainly due to higher income tax expenses.
Non-GAAP net income came in at $81 million or 53 cents per share compared with $48.5 million or 32 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.
Ciena Corporation Price, Consensus and EPS Surprise
Quarterly total revenues increased 20.8% year over year to $899.4 million, primarily due to higher product sales. The top line surpassed the Zacks Consensus Estimate of $861 million. Fiscal 2018 revenues increased 10.4% year over year to $3,094.3 million.
Geographically, revenues from North America were $555.3 million, up 26.1% year over year. Revenues from Europe, Middle East and Africa were $123.1 million, up 11.2%. In Caribbean and Latin America revenues totaled $53 million, up 21.8% and in Asia Pacific revenues were $168 million, up 12.2%.
Other Quarter Details
Gross margin was 44.3% compared with 43.7% in the year-ago quarter. Operating expenses were $302.2 million compared with $269.9 million a year ago. Operating margin was 10.7% compared with 7.5% in the prior-year quarter. Adjusted EBITDA was $145.8 million, up from $109.7 million.
Segmental Performance
Revenues from Networking Platforms increased 19% year over year to $712.9 million. Software and Software-Related Services revenues were $67.3 million compared with $41.8 million in the prior-year quarter. Revenues from Global Services were $119.2 million compared with $103.7 million a year ago.
Share Repurchases
During the quarter, Ciena repurchased approximately 1.3 million shares for an aggregate amount of $36.2 million. During fiscal 2018, the company repurchased approximately 4.3 million shares at an average price of $25.86 per share for an aggregate amount of $111 million.
Cash Flow
In fiscal 2018, Ciena generated $229.3 million of cash from operating activities compared with $234.9 million in fiscal 2017.
Liquidity
As of Oct 31, 2018, Ciena had $745.4 million of cash and cash equivalents and $686.5 million of net long-term debt.
Zacks Rank & Other Stocks to Consider
Ciena currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader industry include QUALCOMM Incorporated (QCOM - Free Report) , Ubiquiti Networks, Inc. and Juniper Networks, Inc. (JNPR - Free Report) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Juniper carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm has a long-term earnings growth expectation of 11.5%. It beat earnings estimates in each of the trailing four quarters, the average being 18.5%.
Ubiquiti has a long-term earnings growth expectation of 14%. It surpassed earnings estimates in three of the trailing four quarters, the average positive surprise being 11.3%.
Juniper has a long-term earnings growth expectation of 5.5%. It beat earnings estimates in each of the trailing four quarters, the average being 11%.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Ciena (CIEN) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Ciena Corporation (CIEN - Free Report) reported healthy fourth-quarter fiscal 2018 (ended Oct 31, 2018) results wherein both the top line and the bottom line surpassed the respective Zacks Consensus Estimate.
Net Income
On a GAAP basis, net income for the reported quarter was $64 million or 34 cents per share compared with $1,160.1 million or $7.32 per share in the year-ago quarter. The year-over-year decrease was primarily due to higher cost of goods sold and lower benefit from income tax. For fiscal 2018, net loss was $344.7 million or loss of $2.49 per share against income of $1,262 million or $7.53 per share a year ago, mainly due to higher income tax expenses.
Non-GAAP net income came in at $81 million or 53 cents per share compared with $48.5 million or 32 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation Price, Consensus and EPS Surprise | Ciena Corporation Quote
Revenues
Quarterly total revenues increased 20.8% year over year to $899.4 million, primarily due to higher product sales. The top line surpassed the Zacks Consensus Estimate of $861 million. Fiscal 2018 revenues increased 10.4% year over year to $3,094.3 million.
Geographically, revenues from North America were $555.3 million, up 26.1% year over year. Revenues from Europe, Middle East and Africa were $123.1 million, up 11.2%. In Caribbean and Latin America revenues totaled $53 million, up 21.8% and in Asia Pacific revenues were $168 million, up 12.2%.
Other Quarter Details
Gross margin was 44.3% compared with 43.7% in the year-ago quarter. Operating expenses were $302.2 million compared with $269.9 million a year ago. Operating margin was 10.7% compared with 7.5% in the prior-year quarter. Adjusted EBITDA was $145.8 million, up from $109.7 million.
Segmental Performance
Revenues from Networking Platforms increased 19% year over year to $712.9 million. Software and Software-Related Services revenues were $67.3 million compared with $41.8 million in the prior-year quarter. Revenues from Global Services were $119.2 million compared with $103.7 million a year ago.
Share Repurchases
During the quarter, Ciena repurchased approximately 1.3 million shares for an aggregate amount of $36.2 million. During fiscal 2018, the company repurchased approximately 4.3 million shares at an average price of $25.86 per share for an aggregate amount of $111 million.
Cash Flow
In fiscal 2018, Ciena generated $229.3 million of cash from operating activities compared with $234.9 million in fiscal 2017.
Liquidity
As of Oct 31, 2018, Ciena had $745.4 million of cash and cash equivalents and $686.5 million of net long-term debt.
Zacks Rank & Other Stocks to Consider
Ciena currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader industry include QUALCOMM Incorporated (QCOM - Free Report) , Ubiquiti Networks, Inc. and Juniper Networks, Inc. (JNPR - Free Report) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Juniper carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm has a long-term earnings growth expectation of 11.5%. It beat earnings estimates in each of the trailing four quarters, the average being 18.5%.
Ubiquiti has a long-term earnings growth expectation of 14%. It surpassed earnings estimates in three of the trailing four quarters, the average positive surprise being 11.3%.
Juniper has a long-term earnings growth expectation of 5.5%. It beat earnings estimates in each of the trailing four quarters, the average being 11%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>