Ciena Meets on the Top Line, Misses Where It Counts
Ciena (NAS: CIEN) reported earnings on March 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Ciena met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share dropped.
Gross margin dropped, operating margin grew, and net margin improved.
Ciena booked revenue of $416.7 million. The 11 analysts polled by S&P Capital IQ expected net sales of $415.0 million on the same basis. GAAP reported sales were 3.8% lower than the prior-year quarter's $433.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.17. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share on the same basis. GAAP EPS were -$0.49 for Q1 against -$0.84 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.3%, 80 basis points worse than the prior-year quarter. Operating margin was -7.0%, 270 basis points better than the prior-year quarter. Net margin was -11.4%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $449.6 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.85 billion. The average EPS estimate is $0.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 468 members out of 544 rating the stock outperform, and 76 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give Ciena a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ciena is outperform, with an average price target of $16.63.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Ciena fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in our free report: "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Ciena to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.