CIENA Corp Earnings Cheat Sheet: Loss Narrows and Tops Forecasts

CIENA Corporation’s (NASDAQ:CIEN) fourth quarter loss narrowed, beating estimates. Ciena is a provider of communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic.

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CIENA Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $22.3 million (loss of 23 cents per diluted share) from $80.3 million (loss of 85 cents per share) in the same quarter a year earlier.

Revenue: Rose 9.1% to $455.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CIEN reported adjusted net income of 3 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 5 cents per share. Analysts were expecting revenue of $450.3 million.

Quoting Management: “We continue to deliver on the growth and operating efficiency milestones we laid out early last year, and remain focused on delivering operating leverage from the business. Our strong fourth quarter financial performance included positive cash flow and a second consecutive quarter of as-adjusted operating profit,” said Gary Smith, president and CEO of Ciena. “While macroeconomic uncertainty remains, we are taking market share because customers recognize our differentiation and the strong alignment of our portfolio with their network architecture priorities.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.7% to $435.3 million in the third quarter. The figure rose 64.9% in the second quarter from the year earlier and climbed more than twofold in the first quarter from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 8 cents versus a mean estimate of a loss of 21 cents per share.

Gross margins grew 1.4 percentage points to 41.7%. The growth seemed to be driven by increased revenue, as the figure rose 9.1% from the year earlier quarter while costs rose 6.5%.

The average estimate for the fiscal year is now 60 cents per share, a rise from the 61 cents predicted ninety days ago.

Competitors to Watch: Tellabs, Inc. (NASDAQ:TLAB), Alcatel-Lucent (NYSE:ALU), Cisco Systems, Inc. (NASDAQ:CSCO), ADTRAN, Inc. (NASDAQ:ADTN), Sycamore Networks, Inc. (NASDAQ:SCMR), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Orckit Communications Ltd (NASDAQ:ORCT), Juniper Networks, Inc. (NYSE:JNPR), Infinera Corp. (NASDAQ:INFN), and JDS Uniphase Corporation (NASDAQ:JDSU).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)