Ciena Corporation ($CIEN) Earnings (Q1 FY22)

 Ciena Corporation ($CIEN) Earnings and Opinion:


Ciena Corporation ($CIEN) is a company that is in the Technology sector and operates in the Communication Equipment industry. The company currently has communication networks worldwide. Ciena was founded in 1992 and is currently headquartered in Hanover, Maryland. The company first traded on the stock market in 1997.

Ciena Corporation EPS and Revenue (Q1 FY22):

  • EPS (Non-GAAP) of $0.47 same as expectations of $0.47
  • Revenue of $844.4M coming in below expectations of $846.49M
  • EPS was down 9.62% (YOY) and Revenue was up 11.5% (YOY)
Ciena Corporation Share Repurchase
  • Entered into a $250M share repurchase program
  • Final settlement complete in Q2 FY22 with 3.6M shares repurchased
Ciena Corporation Other Financial Metrics:
  • Net Income of $45.823M, down 17.21% (YOY)
  • Adjusted EBITDA of $123.66M, down 7.55% (YOY)
Opinion:
Ciena Corporation is currently declining in todays trading session after reporting earnings before the markets opened this morning. Supply-chain woes seem to have put the company in a whirlwind. With products usually able to turn around quickly, they seeing waits of up to half a year to get their products delivered. The company usually has $1B in backorders, but has seen that number rise to $3B given the macro situation. This could be the main reason revenue came in below expectations and EPS came in right at consensus estimates. They have also reported that costs have also increased, which is also due to supply chain and shortages of products. It seems as if this company is not at its prime with everything that is going on in the macro world. However, they seem to be still guiding investors to higher revenue for the next quarter. Personally, I have never really looked into this company until today. This is not the most ideal first impression of a company, as they missed expectations. However, it may not be one to look out for in the future. I am very intrigued by companies in the Technology sector, because I feel like it is always expanding and businesses can grow in so many different kinds of ways within this sector. At this moment though, I would hold off on this company. It seems to be going through a little bit of struggle currently and needs to get some of its margins back up for me to be interested.


*Information from Yahoo Finance, Ciena, and Barrons
*Estimates attained from Zacks 

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