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) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Ciena Corporation (CIEN - Free Report) is scheduled to report fourth-quarter fiscal 2019 financial results (ended Oct 31, 2019) on Dec 12, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 24.6%. Notably, Ciena topped the Zacks Consensus Estimate for earnings in the trailing four quarters, the average positive surprise being 15.7%.
The company is likely to report higher revenues year over year owing to market share gains stemming from technology leadership and diversified customer base in high-growth markets. Whether this can result into an earnings beat remains to be seen.
Factors at Play
Strong execution of operational strategies and favorable industry dynamics are likely to have benefited Ciena’s business. The company has reinforced its competitive position particularly with its focused investments in Optical Packets and Blue Planet automation software.
During the fiscal fourth quarter, Ciena completed a significant upgrade to the SEA-ME-WE 5 (South East Asia – Middle East – Western Europe 5) submarine cable system to support enterprise data exchange, Internet TV and online gaming. Markedly, the SEA-ME-WE 5 cable system is 20,000 km long and spans across 17 countries. The cable’s 100Gbps technology is expected to meet increasing bandwidth demand between Europe and Asia.
Ciena’s photonic and coherent optical innovations were chosen by Internet2, a non-profit technology community, to transform its network to a more scalable and adaptive architecture. Internet2 intends to deploy Ciena’s latest-generation Waveserver, powered by WaveLogic 5 Extreme, programmable 200G-800G coherent optics. The deal is likely to have aided the company’s performance.
For the to-be-reported quarter, the Zacks Consensus Estimate for consolidated revenues stands at $965 million. It registered revenues of $899 million in the prior-year quarter. Adjusted earnings per share are pegged at 63 cents, indicating a rise from 53 cents reported a year ago.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Ciena this time around. 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. But that’s not the case here as you’ll see below:
Earnings ESP: Ciena’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 63 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ciena currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Worthington Industries, Inc. (WOR - Free Report) is scheduled to release results on Dec 17. The company has an Earnings ESP of +5.78% and carries a Zacks Rank #3.
General Mills, Inc. (GIS - Free Report) has an Earnings ESP of +1.58% and carries a Zacks Rank of 3. The company is set to report results on Dec 18.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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.
Image: Bigstock
Ciena (CIEN) to Report Q4 Earnings: What's in the Cards?
Ciena Corporation (CIEN - Free Report) is scheduled to report fourth-quarter fiscal 2019 financial results (ended Oct 31, 2019) on Dec 12, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 24.6%. Notably, Ciena topped the Zacks Consensus Estimate for earnings in the trailing four quarters, the average positive surprise being 15.7%.
The company is likely to report higher revenues year over year owing to market share gains stemming from technology leadership and diversified customer base in high-growth markets. Whether this can result into an earnings beat remains to be seen.
Factors at Play
Strong execution of operational strategies and favorable industry dynamics are likely to have benefited Ciena’s business. The company has reinforced its competitive position particularly with its focused investments in Optical Packets and Blue Planet automation software.
During the fiscal fourth quarter, Ciena completed a significant upgrade to the SEA-ME-WE 5 (South East Asia – Middle East – Western Europe 5) submarine cable system to support enterprise data exchange, Internet TV and online gaming. Markedly, the SEA-ME-WE 5 cable system is 20,000 km long and spans across 17 countries. The cable’s 100Gbps technology is expected to meet increasing bandwidth demand between Europe and Asia.
Ciena’s photonic and coherent optical innovations were chosen by Internet2, a non-profit technology community, to transform its network to a more scalable and adaptive architecture. Internet2 intends to deploy Ciena’s latest-generation Waveserver, powered by WaveLogic 5 Extreme, programmable 200G-800G coherent optics. The deal is likely to have aided the company’s performance.
For the to-be-reported quarter, the Zacks Consensus Estimate for consolidated revenues stands at $965 million. It registered revenues of $899 million in the prior-year quarter. Adjusted earnings per share are pegged at 63 cents, indicating a rise from 53 cents reported a year ago.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Ciena this time around. 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. But that’s not the case here as you’ll see below:
Earnings ESP: Ciena’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 63 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ciena Corporation Price and EPS Surprise
Ciena Corporation price-eps-surprise | Ciena Corporation Quote
Zacks Rank: Ciena currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
CarMax, Inc. (KMX - Free Report) is slated to release quarterly results on Dec 20. It has an Earnings ESP of +0.21% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries, Inc. (WOR - Free Report) is scheduled to release results on Dec 17. The company has an Earnings ESP of +5.78% and carries a Zacks Rank #3.
General Mills, Inc. (GIS - Free Report) has an Earnings ESP of +1.58% and carries a Zacks Rank of 3. The company is set to report results on Dec 18.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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 >>