Will These Two Earnings Reports Make a Difference to Markets?

CIENA Corporation (CIEN): Published its first quarter earnings today, and less than spectacular results precipitated a drastic slide in share values by over 17%. CIENA reported an adjusted net loss 24 cents per share, posting double the loss projected by analysts at 12 cents per share. The company lost $62.9 million this quarter, down from a $90 million loss in the fourth quarter last year. Gary Smith, President and CEO of the communications network and software servicer was tight lipped in a press statement today, commenting, “Momentum continues to be strong across our business, as evidenced by high levels of customer engagement, additional design wins around the world and strong order flows.”

See if the bad news for CIENA extends to these competitors: Tellabs, Inc. (NASDAQ:TLAB), Alcatel-Lucent (NYSE:ALU), and Cisco Systems, Inc. (NASDAQ:CSCO).

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA): Also reported its first quarter earnings today, and financials from the “one-stop shopping” beauty retailer were much prettier than CIENA. Ulta topped mean analyst estimates by six cents per share, posting net income of $23.3 million last quarter, a 71% increase over last year’s earnings. The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 48.8% and in the third quarter of the last fiscal year, the figure rose 67.9%. Wall Street was all smiles after getting the news, and beautiful things happened for (NASDAQ:ULTA) shareholders as the stock has gained over 10% in trading on the day. President and CEO Chuck Rubin was glowing in a press release, saying “We had a terrific start to the year with total sales, comparable store sales and net income per share solidly ahead of our guidance, demonstrating the ongoing preference of our beauty experience and the continued success of our growth strategies. We generated consumer excitement and heightened interest in Ulta with newness across categories, brands and services. In addition, we saw robust growth in guest count in our Ulta stores and at ulta.com as we leveraged our active eight million member loyalty base and delivered compelling social media, email and direct mail marketing campaigns.”

Watch for these companies to keep pace: Sally Beauty Hldgs., Inc. (NYSE:SBH), Perfumania Holdings, Inc. (NASDAQ:PERF), and Avon Products, Inc. (NYSE:AVP).

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