Ciena Beats on Both Top and Bottom Lines

Ciena (NAS: CIEN) reported earnings on June 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), Ciena beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped. GAAP loss per share contracted.


Margins grew across the board.

Revenue details
Ciena logged revenue of $507.7 million. The 20 analysts polled by S&P Capital IQ foresaw sales of $483.9 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $477.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.02. The 22 earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. Non-GAAP EPS of $0.02 for Q2 were 50% lower than the prior-year quarter's $0.04 per share. GAAP EPS were -$0.27 for Q2 against -$0.28 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.3%, 300 basis points better than the prior-year quarter. Operating margin was -1.8%, 30 basis points better than the prior-year quarter. Net margin was -5.3%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $531.2 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $2.04 billion. The average EPS estimate is $0.51.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 477 members out of 554 rating the stock outperform, and 77 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 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 $19.15.

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The article Ciena Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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