The 10-second takeaway
For the quarter ended Oct. 31 (Q4), CIENA met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share grew.
Margins contracted across the board.
CIENA chalked up revenue of $465.5 million. The 19 analysts polled by S&P Capital IQ anticipated revenue of $468.2 million on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $455.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The 20 earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.39 for Q4 against -$0.23 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 41.3%, 40 basis points worse than the prior-year quarter. Operating margin was -4.3%, 140 basis points worse than the prior-year quarter. Net margin was -8.3%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $451.9 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $0.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 470 members out of 543 rating the stock outperform, and 73 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give CIENA a green thumbs-up, and 20 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 $17.06.
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