Ciena Corporation (CIEN - Free Report) communicated that it has been selected by Telia Carrier, a Sweden-based telecommunication services company, as the provider of a new Open Optical Line System (O-OLS) in Europe. Financial terms of the agreement remained undisclosed. Ciena continues to benefit from market share gains on the back of technology leadership and diversified customer base in high-growth markets.
Telia Carrier, which is wholly owned by Telia Company, aims to maintain its market position and capitalize growth opportunities in its long-haul transport network. Reportedly, the chosen system will be deployed from the beginning of 2020 and will provide greater capacity across Frankfurt, London, Amsterdam and Paris markets. It will link up additional key locations in Telia Carrier’s network to create a European Express Network.
The network provider will also deploy Ciena’s Waveserver transponders, driven by Wavelogic Ai and WaveLogic 5 Extreme coherent optics, which can be deployed in the new O-OLS in Europe, as well as in other existing Line Systems in Telia Carrier’s network, in both Europe and the United States. In a sustained pursuit of innovation, Ciena has been facilitating network providers to offer more connected experiences for their customers.
Additionally, Ciena’s revenues are expected to increase from the rising demand for packet-optical transport and switching products, integrated network and service management software. The company is diversifying its footprint in data-center connectivity, which has enhanced its reach into a broader end-to-end optical and data-equipment market. It is investing in the data and optical fiber market to cash in on the tremendous growth opportunity presented by bandwidth demand from network service providers.
Ciena has long-term earnings growth expectation of 17.3%. The stock has added 12.1% compared with the industry’s growth of 12.5% year to date.
Notably, the company topped earnings estimates in each of the trailing four quarters, delivering an average beat of 15.7%. The Zacks Consensus Estimate for its current-year earnings has been revised 8% upward over the past 90 days.
Ciena currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry are Qualcomm Incorporated (QCOM - Free Report) , Ubiquiti Inc. (UI - Free Report) and Viasat, Inc. (VSAT - Free Report) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Viasat carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm has long-term earnings growth expectation of 14%.
Ubiquiti has long-term earnings growth expectation of 9.4%.
Viasat surpassed earnings estimates in each of the trailing four quarters, the average surprise being 252%.
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