CIENA Earnings: Here’s Why Investors are Buying Shares Now

CIENA Corp. (NASDAQ:CIEN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.55%.

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CIENA Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 50% to $0.02 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 6.3% to $507.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CIENA Corp. reported adjusted EPS income of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.01. It beat the average revenue estimate of $483.63 million.

Quoting Management: “We have designed Ciena to take advantage of the fundamental shift in network architecture driven by changing end-user demands, and our strong quarterly and first half of 2013 performance are a direct result of that strategy. Our unique ability to provide customers convergence, automation, openness and software intelligence positions us to lead the industry in this shift,” said Gary B. Smith, president and CEO of Ciena. “These dynamics are creating new opportunities that we believe will enable us to continue making progress toward our long-term financial goals.”

Key Stats (on next page)…

Revenue increased 12.05% from $453.09 million in the previous quarter. EPS decreased 83.33% from $0.12 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.09 to a profit $0.11. For the current year, the average estimate has moved up from a profit of $0.21 to a profit of $0.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)