Ciena Corp. (NYSE:CIEN) Earning Report

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By Stefan Larson on December 12, 2014 Company

Ciena Corp. (NYSE:CIEN) is a U.S based company which deals with telecommunications networking material, software as well as services that work with the delivery of voice, video and data services. The company is located in Maryland and it was founded in the year 1992. On Thursday prior to the opening of the market, Ciena Corp. (NYSE:CIEN) revealed results of its fiscal 4^th quarter. The results showed -$0.08 in earnings per share and $591 million was shown in the company’s revenue. The numbers were contrary to the estimates of Thomson Reuters. According to Reuters the earning per share – EPS should have been $0.13 and the revenue should have been $589.44 million. Last year, Ciena Corp. (NYSE:CIEN) showed it’s EPS in the 4^th quarter as $0.13 and the revenue was $583.38 million. Clearly, the company’s revenue this year has improved from that of last years.

Ciena Corp. (NYSE:CIEN) presented its mind-set for the revenue in the first quarter to be between $540 million to $570 million. With a 40% gross margin and around $210 million operating expense. However, the concurrent estimates for the 1^st quarter show the earning per share of $0.12 and the revenue is shown to be $566.58 million.

Some of the keys points that were evident in the earnings report are that 47.8% of the overall revenue was collected by customers living outside US. It shows that the company is not just popular in US, but is equally popular worldwide and its bigger market is outside US. Another noticeable point was that the total amount of cash and investments were recorded to be $777.0 million. Last but not least, point is that the inventories added up to the amount of $254.7 million.

The CEO as well as the president of Ciena (NYSE:CIEN) Gary B. said that the company not only showed strong revenue growth, but also improved profitability in the fiscal 2014. He said that the improvement was a result of having a more diversified customer base and the strong positioning of the company’s solutions to the demands and needs of the customers. He also said that the company is in a good position to expand itself and continue its growth and increase profitability in the year 2015 as well. Gary has high hopes for the company’s future and his words show his optimistic approach towards the upcoming year.

On December 5, Zacks had restated a Neutral rating for Ciena Corp. (NYSE:CIEN) with setting $17 as its price target.

On Wednesday, the company’s shares closed with a decline – 3.5% at $16.96. After the company released its earnings report, the immediate response from the premarket was not very encouraging. Due to the negative response from the premarket, the company’s shares went down to 3% at $16.41.

According to consensus made by analysts, $24.50 is the company’s price target and the 52 week trading range is shown to be $13.77 to $27.16. Ciena Corp. (NYSE:CIEN) has a market capitalization of around $2 billion.

The company’s earnings report of the next quarter will show whether Gary’s positivity was justified or not.