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

Earnings calendar for the week of March 8

On the heels of lawmakers moving closer to passing the stimulus bill, inflations concerns gripped the market after Federal Reserve chief Jerome Powell at a meeting said the reopening would

Why Costco’s (COST) growth prospects might depend on beating costs, digital lag

Though the retail boom triggered by the pandemic was estimated to be short-lived initially, the shopping spree continued as customers stocked up on essential items, concerned about the persistent market

Gap (GPS) hopes to see a favorable recovery by the second half of 2021

Shares of Gap Inc. (NYSE: GPS) were up 5.8% in afternoon hours on Friday. The stock has gained 103% over the past 12 months. Gap reported mixed results for the

Add Comment
Viewing Highlight