We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ciena (CIEN) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Read MoreHide Full Article
Ciena Corporation (CIEN - Free Report) reported first-quarter fiscal 2023 (ended Jan 28) results, with adjusted earnings of 64 cents per share beating the Zacks Consensus Estimate of 36 cents. Earnings improved 36.2% year over year.
Quarterly total revenues were up 25% year over year to $1,056.5 million owing to improvement in supply-chain issues and strong demand. The top line surpassed the Zacks Consensus Estimate by 10.1%.
Non-telco customers contributed nearly 40% to revenues in the reported quarter. Two customers represented a total of 25.7% of revenues in the fiscal first quarter.
Ciena Corporation Price, Consensus and EPS Surprise
Total revenues in Networking Platforms (81% of total revenues) increased 36.5% year over year to $855.1 million.
Platform Software and Services’ revenues (6.9% of total revenues) totaled $73.4 million, up 0.7% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services’ revenues (1.4% of total revenues) declined 27% to $15.4 million.
Total revenues in Global Services (10.7% of total revenues) were $112.6 million, down 9% year over year.
Region-wise, revenues in the Americas were $765.1 million, up 28.6% year over year. Revenues in Europe, the Middle East and Africa were $152.8 million, up 1.3% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $138.6 million, up 40.7% from the prior-year quarter figure.
Other Details
Non-GAAP adjusted gross margin was 43.7% compared with 46.2% in the year-ago quarter. Adjusted operating expenses were $329.3 million, up 13.6% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 12.6% compared with 11.8% in the prior-year quarter. Non-GAAP adjusted EBITDA increased 25.4% year over year to $155.1 million.
Cash Flow & Liquidity
For the quarter ended Jan 28, Ciena’s net cash used in operating activities was $265.6 million compared with $54.4 million in the prior-year quarter.
As of Jan 28, the company had $1.2 billion in cash and investments and $1,547.5 million of net long-term debt.
Guidance
For the second quarter of fiscal 2023, the company expects revenues in the range of $1,035-$1,115 million. The adjusted gross margin is estimated to be low 40%. Adjusted operating expenses are estimated to be $335 million.
For fiscal 2023, the company expects revenue growth in the range of 20-22%, up from the earlier guided range of 16-18%. Adjusted gross margin is estimated to be between 42% and 44%. Adjusted operating expenses are estimated to be $330 million per quarter in the remaining quarters.
The outlook is driven by a strong demand and signs of supply-chain improvement.
The company plans to repurchase shares worth $250 million in fiscal 2023. Ciena repurchased $500 million worth of shares in fiscal 2022.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 18.4% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 66.4% in the past year.
The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.31 per share, rising 96% in the past 60 days.
Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41.1% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ciena (CIEN) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Ciena Corporation (CIEN - Free Report) reported first-quarter fiscal 2023 (ended Jan 28) results, with adjusted earnings of 64 cents per share beating the Zacks Consensus Estimate of 36 cents. Earnings improved 36.2% year over year.
Quarterly total revenues were up 25% year over year to $1,056.5 million owing to improvement in supply-chain issues and strong demand. The top line surpassed the Zacks Consensus Estimate by 10.1%.
Non-telco customers contributed nearly 40% to revenues in the reported quarter. Two customers represented a total of 25.7% of revenues in the fiscal first quarter.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation price-consensus-eps-surprise-chart | Ciena Corporation Quote
Segment Results
Total revenues in Networking Platforms (81% of total revenues) increased 36.5% year over year to $855.1 million.
Platform Software and Services’ revenues (6.9% of total revenues) totaled $73.4 million, up 0.7% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services’ revenues (1.4% of total revenues) declined 27% to $15.4 million.
Total revenues in Global Services (10.7% of total revenues) were $112.6 million, down 9% year over year.
Region-wise, revenues in the Americas were $765.1 million, up 28.6% year over year. Revenues in Europe, the Middle East and Africa were $152.8 million, up 1.3% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $138.6 million, up 40.7% from the prior-year quarter figure.
Other Details
Non-GAAP adjusted gross margin was 43.7% compared with 46.2% in the year-ago quarter. Adjusted operating expenses were $329.3 million, up 13.6% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 12.6% compared with 11.8% in the prior-year quarter. Non-GAAP adjusted EBITDA increased 25.4% year over year to $155.1 million.
Cash Flow & Liquidity
For the quarter ended Jan 28, Ciena’s net cash used in operating activities was $265.6 million compared with $54.4 million in the prior-year quarter.
As of Jan 28, the company had $1.2 billion in cash and investments and $1,547.5 million of net long-term debt.
Guidance
For the second quarter of fiscal 2023, the company expects revenues in the range of $1,035-$1,115 million. The adjusted gross margin is estimated to be low 40%. Adjusted operating expenses are estimated to be $335 million.
For fiscal 2023, the company expects revenue growth in the range of 20-22%, up from the earlier guided range of 16-18%. Adjusted gross margin is estimated to be between 42% and 44%. Adjusted operating expenses are estimated to be $330 million per quarter in the remaining quarters.
The outlook is driven by a strong demand and signs of supply-chain improvement.
The company plans to repurchase shares worth $250 million in fiscal 2023. Ciena repurchased $500 million worth of shares in fiscal 2022.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Perion Network (PERI - Free Report) and Pegasystems (PEGA - 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’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 18.4% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 66.4% in the past year.
The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.31 per share, rising 96% in the past 60 days.
Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41.1% in the past year.