Ciena (CIEN) to Post Q3 Earnings: Here's What to Expect
Ciena Corporation CIEN is scheduled to report third-quarter fiscal 2023 results on Aug 31.
The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, suggesting 60.6% increase from the year-ago quarter’s levels.
For the third quarter of fiscal 2023, management expects revenues in the range of $1-$1.08 billion.
The consensus estimate for revenues is pegged at $1.05 billion, indicating a gain of 21.1% from the prior-year quarter’s levels.
CIEN has a trailing four-quarter earnings surprise of 189.5%, on average. Shares of Ciena have lost 19.7% in the past year compared with the sub-industry's decline of 19.6%.
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Factors to Note
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.
CIEN’s routing and switching solutions are likely to have witnessed strong uptake. Contribution from the Vyatta platform, which Ciena acquired from AT&T along with other acquisitions (Tibit and Benu), is likely to have favored the segment.
Ciena Corporation Price and EPS Surprise
Ciena Corporation price-eps-surprise | Ciena Corporation Quote
Ciena is witnessing strong momentum for its WaveLogic 5 Extreme solution. In the last reported quarter, the company added 14 new customers for its WaveLogic 5 Extreme solution, bringing customer count to 228.
Incremental gains from healthy performance of its software automation business, especially Blue Planet Software, are likely to have aided the top line. For the fiscal third quarter, we expect revenues from Blue Planet Automation Software and Services to be $19.4 million.
However, certain buyers are pushing out orders into subsequent quarters as they scrutinize their budgets amid macroeconomic troubles. This is likely to have affected revenues in the to-be-reported quarter. Volatile supply-chain dynamics, elongated lead times, and related higher logistics costs remain concerns. Inflation and higher expenses on product development amid stiff competition in the networking space might further have limited margin expansion in the quarter under review.
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 -2.12% 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.
Five Below FIVE has an Earnings ESP of +1.21% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Five Below is set to release second-quarter fiscal 2023 results on Aug 30. The Zacks Consensus Estimate for earnings is pegged at 83 cents per share, suggesting an increase of 12.2% from the prior-year quarter’s reported figure. Shares of FIVE have gained 41% in the past year.
Ollie's Bargain Outlet Holdings, Inc OLLI has an Earnings ESP of +6.12% and a Zacks Rank of 2.
Ollie's Bargain Outlet Holdings is slated to report second-quarter fiscal 2023 numbers on Aug 31. The Zacks Consensus Estimate for earnings is pegged at 61 cents per share, indicating a surge of 177.3% from the year-earlier quarter’s levels. Shares of OLLI have jumped 21.1% in the past year.
Lululemon Athletica Inc LULU has an Earnings ESP of +2.10% and a Zacks Rank of 3.
Lululemon Athletica is scheduled to post second-quarter fiscal 2023 figures on Aug 31. The Zacks Consensus Estimate for earnings is pegged at $2.53 per share, implying 15% rise from the year-ago quarter’s levels. Shares of LULU have increased 18.9% in the past year.
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Ciena Corporation (CIEN) : Free Stock Analysis Report
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Five Below, Inc. (FIVE) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
