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Ciena Corporation Message Board

  • twm48976 twm48976 Dec 12, 2013 1:40 PM Flag

    Cramer bought 100 more shares...he will be pumping so in a good place here :-)

    Subj: Action Alerts TRADE -- CIEN


    Thursday, December 12, 2013 8:47 a.m. EST

    -- Buying 1,000 shares of CIEN.

    This morning Ciena (CIEN:Nasdaq) reported earnings for its
    fiscal 4Q and issued 1Q guidance.

    We were expecting a solid quarter and conservative guidance.
    Instead we got an earnings miss, a revenue beat and
    better-than-feared guidance. The stock is down in the
    premarket and we'll add to our position. We like the
    long-term story of CIEN, its market share growth in optical
    and its new products and strong trends in the upgrade cycle
    from the service providers and cable companies.

    We'll add 1,000 shares, which have a bid/ask of
    $20.33/$20.35, ahead of the conference call.

    We see the reaction as overdone, especially on a blowout
    revenue number and record backlog. Fiscal 4Q earnings missed
    consensus by 8 cents a share and came in at 16 cents a
    share. Revenues rose 8.4% q/q and 25.3% y/y and easily beat
    consensus at $583.4 million.

    Revenue by product beat in every segment. Converged packet
    optical was $351 million and is now 60.1% of total revenues
    (up from 56.1% q/q and 51.1% y/y), packet networking was
    $61.1 million, optical transport $52.6 million and
    software/services at $118 million. The issue is that
    operating expenses rose 10.6% q/q and 9.7% y/y to $210
    million and was the cause of the earnings miss. Our sense is
    that the company had higher sale comps because of the strong
    orders and that accelerators kicked in. We'll get more on
    the call, but with a book to bill north of 1 and a record
    backlog (discussed in the press release), underlying demand
    is strong.

    Guidance was also better than feared on all metric,s with
    revenues at $515-545 million vs. $537 million consensus,
    adjusted gross margins in the low 40% range and for
    operating expenses to be $204 million. It will also transfer
    its listing from the Nasdaq to the NYSE on Dec. 23.
    We'll get more detail from the call, but we see a strong
    2014 for the company with positive operating leverage,
    market sh

    Sentiment: Strong Buy

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    • Cramer buying a 1000 shares - a "great sign" of confidence to what he is endorsing. LOL

      Sentiment: Hold

    • Thanks for posting this. Do you subscribe to their newsletter? If so, do you think it's worth the price?

    • Guidance was also better than feared on all metric,s with
      revenues at $515-545 million vs. $537 million consensus,
      adjusted gross margins in the low 40% range and for
      operating expenses to be $204 million. It will also transfer
      its listing from the Nasdaq to the NYSE on Dec. 23.
      We'll get more detail from the call, but we see a strong
      2014 for the company with positive operating leverage,
      market share gains and continued strong top-line growth
      driven by its diverse products and demand from its key
      customers.

      After the trade we'll own 2,700 shares of CIEN, or 2%.

      Regards,

      Jim Cramer, Stephanie Link, and TheStreet Research Team

      Sentiment: Strong Buy

      • 1 Reply to twm48976
      • I think you miss the point. This a company that has treated investors badly considering how the management compensates itself and its sales staff. They should be posting much better profits after more than a decade in this field. I was in business for 40 yrs(my own company) and you don't continaully chase customers with money and ever show real growing profit. This is just a cash cow management is milking for itself and a few others. They don't give a damn about investors. IMO

        Sentiment: Strong Sell

 
CIEN
15.53-0.63(-3.90%)Oct 22 4:02 PMEDT

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