Categories Earnings, Technology

Ciena stock rises on upbeat Q4 results

Ciena Corporation (CIEN) reported a 95% plunge in earnings for the fourth quarter due to a decline in income tax benefit. However, the results exceeded analysts’ expectations. The top line increased 21% helped by the continued execution of its proven strategy. Following this, the stock inched up over 6% in the premarket session.

Net income plunged 94.5% to $64.98 million and earnings dipped 95% to $0.34 per share. Adjusted earnings soared 66% to $0.53 per share.

Revenue grew 20.8% to $899.4 million, driven by growths across all of its segments. The top line was benefited by the three 10%-plus customers that represented a total of 33.1% of revenue.

Segment-wise, revenue from total networking platforms increased 19% helped by a jump in converged packet optical revenue. Revenue from software and software-related services jumped 61% on an increase in platform software and services revenue and higher blue planet automation software and services revenue. Total global services revenue grew 15%.

25 operators will roll out 5G in 2019: Report

The results were impacted by several mega trends including cloud, mobility and 5G, fiber densification, data center, and IoT & connected objects. This is driven by an increased need for greater bandwidth and adaptive automation.

Looking ahead into the long term, the company said its strategy execution will drive top-line growth, profitability and cash generation. The company expects revenue to be about 6% to 8% annual growth over the next three years and adjusted EPS to be over 20% annual growth per year over the next three years. Free cash flow is predicted to be about 60% to 70% of adjusted operating income in each of the next three years.

Shares of Ciena ended Wednesday’s regular session up 1.74% at $32.14 on the NYSE. The stock has risen over 53% in the year so far and over 48% in the past year.


We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Add Comment
Viewing Highlight