CIENA Earnings: Loss Widens but Still Faring Better than Street Forecasts
CIENA Corporation (NASDAQ:CIEN) reported its results for the fourth quarter. Ciena is a provider of communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic.
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CIENA Corporation Earnings Cheat Sheet
Results: Loss widened to $38.8 million (39 cents per diluted share) from $22.3 million (loss of 23 cents per share) in the same quarter a year earlier.
Revenue: Rose 2.2% to $465.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: CIENA Corporation reported an adjusted net loss of 7 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 14 cents per share. It beat the average revenue estimate of $447.4 million.
Quoting Management: “With five percent annual revenue growth and fourth quarter financial performance in line with our expectations, we continued to significantly outpace the market and take share in 2012 despite the challenging environment. That momentum resulted in record order flow and year-end backlog,” said Gary Smith, president and CEO of Ciena. “Customers require more network convergence with greater programmability to deliver more services, and we believe our portfolio is leading the transformation to next-generation intelligent networks.”
The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the third quarter and by 10 cents in the second quarter.
Revenue has now increased for three consecutive quarters. In the third quarter, revenue rose 8.9% to $474.1 million while the figure rose 14.3% in the second quarter from the year earlier.
Looking Forward: Analysts seem more negative about the company’s results for the next quarter than two months ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 8 cents a share to a loss of 9 cents over the last sixty days. For the fiscal year, the average estimate has been unchanged at 56 cents a share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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