Ciena Beats on Both Top and Bottom Lines
Jun 1st 2012 12:55PM
Updated Jun 1st 2012 1:10PM
Ciena (NAS: CIEN) reported earnings on May 31. 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 earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share dropped. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins dropped, operating margins grew, and net margins improved.
Ciena reported revenue of $477.6 million. The 20 analysts polled by S&P Capital IQ anticipated revenue of $446.3 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $417.9 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 $0.04. The 21 earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. GAAP EPS were -$0.28 for Q2 versus -$0.66 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 38.3%, 140 basis points worse than the prior-year quarter. Operating margin was -2.1%, 790 basis points better than the prior-year quarter. Net margin was -5.8%, 920 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $471.8 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $1.86 billion. The average EPS estimate is -$0.01.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 472 members out of 550 rating the stock outperform, and 78 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Ciena a green thumbs-up, and 25 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 $17.96.
Over the decades, small-cap stocks like Ciena have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Ciena to My Watchlist.
At the time this article was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.