Ciena Corp Third Quarter Earnings Sneak Peek

Ciena Corporation (NASDAQ:CIEN) will unveil its latest earnings on Thursday, August 30, 2012. 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.

Ciena Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 13 cents per share, up from profit of 8 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from breaking even. Between one and three months ago, the average estimate moved down. It has risen from a loss of 14 cents during the last month.

Past Earnings Performance: Last quarter, the company topped expectations by 10 cents, coming in at net loss of 4 cents per share versus a mean estimate of a loss of 14 cents per share. This followed two straight quarters of missing estimates.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $27.8 million (28 cents a share) from a loss of $62.7 million (66 cents) a year earlier, beating analyst expectations. Revenue rose 14.3% to $477.6 million from $417.9 million.

Stock Price Performance: Between May 31, 2012 and August 24, 2012, the stock price rose $3.33 (24.6%), from $13.55 to $16.88. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 20, 2012, when shares rose for eight straight days, increasing 12.5% (+$1.76) over that span. It saw one of its worst periods between April 24, 2012 and May 4, 2012 when shares fell for nine straight days, dropping 15.2% (-$2.38) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 8.8% in revenue from the year-earlier quarter to $473.4 million.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.91 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.01 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.2% to $485.2 million while assets rose 2.5% to $1.41 billion.

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

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