Will Ciena (CIEN) Pull Off An Earnings Surprise In Q4?
Zacks Investment Research | Dec 05, 2016 04:45AM ET
Ciena Corporation (NYSE:CIEN) is set to report fourth-quarter fiscal 2016 earnings on Dec 8, 2016. Last quarter, the company reported earnings of 35 cents per share, which beat the Zacks Consensus Estimate by 4 cents (12.90%).
Over the trailing four quarters, the company has posted an average positive earnings surprise of 10.84%. However, we note that Ciena has posted a negative return of 1.16% as against the Zacks Fiber Optics industry’s gain of 36.53% on a year-to-date basis
Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Rising demand for Packet Optical, Packet Networking and Optical Transport products and increasing use of service management software in the global communication market are positives for Ciena.
Expanding WaveServer customer base is also an encouraging factor. Moreover, the company has been named as the leader in the submarine cable upgrade market by HIS, which demonstrates Ciena’s portfolio strength and its improving pipeline. In this regard, the company noted that it has immense potential in the Asia-Pacific market.
Ciena expects revenues in the range of $700- $730 million in fourth-quarter fiscal 2016. We believe that the company’s strong product portfolio will help it to meet growth expectations in the to-be reported quarter.
Adjusted gross margin is anticipated to be in the mid-40s range, while adjusted operating expenses are likely to be in a range of $230 to $235 million, up sequentially.
CIENA CORP Price and EPS Surprise
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