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Ciena (CIEN) Q4 Earnings & Revenues Top Estimates, Down Y/Y
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Ciena Corporation (CIEN - Free Report) reported fourth-quarter fiscal 2022 (ended Oct 29, 2022) results, with adjusted earnings of 61 cents per share, beating the Zacks Consensus Estimate of 8 cents. However, earnings declined year over year by 28.2%
Quarterly total revenues were down 6.8% year over year to $971 million owing to supply-chain disruptions. However, Ciena stated that revenues are likely to start improving from fiscal 2023, owing to strong secular demand trends coupled with easing supply-chain issues. The top line surpassed the Zacks Consensus Estimate by 14%.
In the reported quarter, revenues were benefited by improved integrated circuits supply than anticipated from select suppliers and procurement of more parts in the open market than anticipated.
Ciena Corporation Price, Consensus and EPS Surprise
In the fiscal year 2022, the company’s revenues remained flat at approximately $3.63 billion owing to supply-chain constraints. However, it was partly offset by robust customer demand across the company’s segments, regions and applications.
Region-wise, revenues in the Americas were $723.5 million, down 3.4% year over year. Revenues in Europe, the Middle East and Africa were $135.1 million, down 21% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $112.4 million, down 7.9% from the prior-year quarter’s tally.
The Hanover, MD-based networking systems and services company’s shares increased 20% on Dec 8, closing the session at $51.87. However, shares are down 1% in premarket trading on Dec 9. In the past year, the stock has lost 29.3% of its value compared with the sub-industry’s decline of 41.3%
Image Source: Zacks Investment Research
Segment Results
Total revenues in Networking Platforms (77.5% of total revenues) fell 9.2% year over year to 752.7 million.
Platform Software and Services revenues (7.4% of total revenues) totaled $71.6 million, up 8.3% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services revenues (2.2% of total revenues) increased 7.1% to $21.2 million.
Total revenues in Global Services (12.9% of total revenues) were $125.5 million, down 1% year over year.
Other Details
Non-GAAP adjusted gross margin was 45.2% compared with 46.3% in the year-ago quarter. Adjusted operating expenses were $312.8 million, up 1.9% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 13% compared with 16.8% in the prior-year quarter. Non-GAAP adjusted EBITDA declined 22.9% year over year to $153.5 million.
The company repurchased approximately 154,200 shares worth $8 million in the fiscal fourth quarter. Ciena repurchased $500 million worth of shares in fiscal 2022.
Cash Flow & Liquidity
For the year ended Oct 29, 2022, Ciena’s net cash used by operating activities was $167.8 million compared with $541.6 million of cash provided by operating activities in the comparable period in the last fiscal year.
As of Oct 29, 2022, the company had 1.2 billion in cash and investments and $1,061.1 million of net long-term debt.
Guidance
For the first quarter of fiscal 2023, the company expects revenues of $910-$990 million. The adjusted gross margin is estimated to be lows 40%. Adjusted operating expenses are estimated to be in the range of $320-$325 million.
For fiscal 2023, the company expects revenue growth of 16%-18%. Adjusted gross margin is estimated to be between 42% and 44%. Adjusted operating expenses are estimated to be in the range of $325 million per quarter. The outlook is driven by a significant backlog and signs of supply-chain improvement.
The company plans to repurchase shares worth $250 million in fiscal 2023.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have jumped 9.2% in the past year.
The Zacks Consensus Estimate for Plexus 2023 earnings is pegged at $5.98 per share, rising 8.9% in the past 60 days.
Plexus’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 17.5%. Shares of PLXS have gained 16.7% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.58 per share, rising 27.7% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 9.4%. Shares of SMCI have soared 95.1% in the past year.
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Ciena (CIEN) Q4 Earnings & Revenues Top Estimates, Down Y/Y
Ciena Corporation (CIEN - Free Report) reported fourth-quarter fiscal 2022 (ended Oct 29, 2022) results, with adjusted earnings of 61 cents per share, beating the Zacks Consensus Estimate of 8 cents. However, earnings declined year over year by 28.2%
Quarterly total revenues were down 6.8% year over year to $971 million owing to supply-chain disruptions. However, Ciena stated that revenues are likely to start improving from fiscal 2023, owing to strong secular demand trends coupled with easing supply-chain issues. The top line surpassed the Zacks Consensus Estimate by 14%.
In the reported quarter, revenues were benefited by improved integrated circuits supply than anticipated from select suppliers and procurement of more parts in the open market than anticipated.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation price-consensus-eps-surprise-chart | Ciena Corporation Quote
In the fiscal year 2022, the company’s revenues remained flat at approximately $3.63 billion owing to supply-chain constraints. However, it was partly offset by robust customer demand across the company’s segments, regions and applications.
Region-wise, revenues in the Americas were $723.5 million, down 3.4% year over year. Revenues in Europe, the Middle East and Africa were $135.1 million, down 21% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $112.4 million, down 7.9% from the prior-year quarter’s tally.
The Hanover, MD-based networking systems and services company’s shares increased 20% on Dec 8, closing the session at $51.87. However, shares are down 1% in premarket trading on Dec 9. In the past year, the stock has lost 29.3% of its value compared with the sub-industry’s decline of 41.3%
Image Source: Zacks Investment Research
Segment Results
Total revenues in Networking Platforms (77.5% of total revenues) fell 9.2% year over year to 752.7 million.
Platform Software and Services revenues (7.4% of total revenues) totaled $71.6 million, up 8.3% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services revenues (2.2% of total revenues) increased 7.1% to $21.2 million.
Total revenues in Global Services (12.9% of total revenues) were $125.5 million, down 1% year over year.
Other Details
Non-GAAP adjusted gross margin was 45.2% compared with 46.3% in the year-ago quarter. Adjusted operating expenses were $312.8 million, up 1.9% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 13% compared with 16.8% in the prior-year quarter. Non-GAAP adjusted EBITDA declined 22.9% year over year to $153.5 million.
The company repurchased approximately 154,200 shares worth $8 million in the fiscal fourth quarter. Ciena repurchased $500 million worth of shares in fiscal 2022.
Cash Flow & Liquidity
For the year ended Oct 29, 2022, Ciena’s net cash used by operating activities was $167.8 million compared with $541.6 million of cash provided by operating activities in the comparable period in the last fiscal year.
As of Oct 29, 2022, the company had 1.2 billion in cash and investments and $1,061.1 million of net long-term debt.
Guidance
For the first quarter of fiscal 2023, the company expects revenues of $910-$990 million. The adjusted gross margin is estimated to be lows 40%. Adjusted operating expenses are estimated to be in the range of $320-$325 million.
For fiscal 2023, the company expects revenue growth of 16%-18%. Adjusted gross margin is estimated to be between 42% and 44%. Adjusted operating expenses are estimated to be in the range of $325 million per quarter. The outlook is driven by a significant backlog and signs of supply-chain improvement.
The company plans to repurchase shares worth $250 million in fiscal 2023.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Plexus (PLXS - Free Report) and Super Micro Computer (SMCI - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have jumped 9.2% in the past year.
The Zacks Consensus Estimate for Plexus 2023 earnings is pegged at $5.98 per share, rising 8.9% in the past 60 days.
Plexus’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 17.5%. Shares of PLXS have gained 16.7% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.58 per share, rising 27.7% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 9.4%. Shares of SMCI have soared 95.1% in the past year.