Ciena (CIEN) to Post Q4 Earnings: Here's What to Expect
Ciena Corporation CIEN is scheduled to report fourth-quarter fiscal 2023 results on Dec 7.
The Zacks Consensus Estimate for earnings is pegged at 69 cents per share, suggesting a 13.1% increase from the year-ago levels.
For the fourth quarter of fiscal 2023, management expects revenues in the range of $1.06-$1.14 billion.
The consensus estimate for revenues is pegged at $1.1 billion, indicating a gain of 13.5% from the prior-year levels.
CIEN has a trailing four-quarter earnings surprise of 193.7%, on average. Shares of Ciena have gained 3.8% in the past year compared with the sub-industry's growth of 3.7%.
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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 adoption of cloud architectures.
In addition to rising 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. For the fiscal fourth quarter, we expect revenues from routing and switching solutions to be $124.8 million, up 21.4% year over year.
Ciena is witnessing strong momentum for its WaveLogic 5 Extreme solution. In the last reported quarter, the company added 18 new customers for its WaveLogic 5 Extreme solution, bringing the customer count to 246. It is also making efforts to boost its market in the coherent routing, broadband access and PON opportunities.
Incremental gains from the healthy performance of its software automation business, especially Blue Planet Software, are likely to have aided the top line. For the fiscal fourth quarter, we expect revenues from Blue Planet Automation Software and Services to be $18.4 million.
However, global macroeconomic troubles, volatile supply-chain dynamics and elongated lead times remain concerns. Further, inflation and higher expenses on product development amid stiff competition in the networking space might have limited margin expansion in the quarter under review.
Ciena Corporation Price and EPS Surprise
Ciena Corporation price-eps-surprise | Ciena Corporation Quote
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 0.00% 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.
Casey's General Stores CASY has an Earnings ESP of +13.86% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey’s is set to release second-quarter fiscal 2024 results on Dec 11. The Zacks Consensus Estimate for earnings is pegged at $3.65 per share. Shares of CASY have gained 19.8% in the past year.
Genasys GNSS has an Earnings ESP of +21.74% and a Zacks Rank #2. GNSS is scheduled to release fourth-quarter fiscal 2023 numbers on Dec 7.
The Zacks Consensus Estimate is pegged at a loss of 8 cents per share. The consensus estimate for revenues is pegged at $10.14 million. The stock has lost 41.1% of its value in the past year.
Lululemon Athletica Inc LULU has an Earnings ESP of +0.19% and a Zacks Rank of 3.
Lululemon Athletica is scheduled to post third-quarter fiscal 2023 figures on Dec 7. The Zacks Consensus Estimate for earnings is pegged at $2.27 per share, implying a 13.5% rise from a year ago. Shares of LULU have increased 22.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Ciena Corporation (CIEN) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Genasys Inc. (GNSS) : Free Stock Analysis Report
