Network equipment maker Ciena's Q3 revenue up 29.4% on data demand
Overview
Ciena fiscal Q3 revenue rises 29.4% yr/yr, beating analyst expectations
Adjusted net income for fiscal Q3 beats analyst estimates, driven by AI demand
Company repurchased 1 mln shares for $81.8 mln during the quarter
Outlook
Ciena expects Q4 revenue between $1.24 bln and $1.32 bln
Company anticipates Q4 adjusted gross margin of 42% to 43%
Ciena forecasts Q4 adjusted operating expenses of $390 mln to $400 mln
Result Drivers
AI DEMAND - Ciena attributes revenue growth to increased demand for high-speed connectivity driven by AI applications
NETWORKING LEADERSHIP - Company cites its leadership in networking systems as a key factor in its strong performance
EXPANDED OPERATING LEVERAGE - Ciena focused on expanding operating leverage to support continued growth, per CEO Gary Smith
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.22 bln | $1.18 bln (12 Analysts) |
Q3 Adjusted EPS |
| $0.67 |
|
Q3 EPS |
| $0.35 |
|
Q3 Adjusted Net Income | Beat | $96.20 mln | $77 mln (11 Analysts) |
Q3 Net Income |
| $50.30 mln |
|
Q3 Cash &Investments |
| $1.39 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Ciena Corp is $90.00, about 5.4% below its September 3 closing price of $94.82
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago
Press Release: ID:nBw8vFfVka
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