- Ciena’s adjusted EPS for Q4 was $0.54, missing both the previous year’s $0.75 and the estimate of $0.66.
- Total revenue slightly declined by 0.5% year-over-year to $1.12 billion, surpassing estimates of $1.1 billion.
- Networking platforms revenue decreased by 2% year-over-year to $859.0 million, exceeding the estimate of $842.8 million.
- Converged Packet Optical segment saw a revenue increase of 4.2% year-over-year to $779.6 million, beating the estimate of $728.5 million.
- Routing and switching revenue experienced a significant decline of 38% year-over-year.
- Platform software and services revenue grew by 21% year-over-year to $99.6 million, above the forecast of $89.3 million.
- Blue Planet Automation software and services revenue increased by 18% year-over-year to $23.5 million but fell short of the $25.5 million estimate.
- Global Services revenue decreased by 5.6% year-over-year to $142.0 million, missing the expected $147.8 million.
- Maintenance support and training revenue rose by 3.8% year-over-year to $77.2 million.
- Installation and deployment revenue dropped by 14% year-over-year to $51.4 million, not meeting the projected $54.7 million.
- Consulting and network design revenue declined by 16% year-over-year to $13.4 million, underperforming compared to the $15.3 million estimate.
- The adjusted gross margin was 41.6%, down from 43.7% the previous year and below the estimated 43.8%.
- Analyst ratings include 8 buys, 9 holds, and no sells on Ciena stock.
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Ciena Corp on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Ciena Corp‘s recent performance. In a report titled “Ciena Corporation: How Are They Executing Market Expansion through Pluggables? – Major Drivers,” Baptista Research highlighted the company’s strong market positioning and potential growth. Ciena Corp‘s fiscal third quarter of 2024 showed robust results, with revenue reaching $942 million, an adjusted gross margin of 43.7%, and adjusted EPS of $0.35. The analysts pointed out strategic wins with cloud providers but also expressed caution regarding international service provider behaviors.
A look at Ciena Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, Ciena Corp shows a promising long-term outlook. With a strong momentum score of 5, the company is positioned to capitalize on market trends and sustain growth over time. Additionally, Ciena Corp scores well in resilience and value, with scores of 3 in each category. This indicates that the company is well-equipped to weather market uncertainties and offers good value to investors.
However, the outlook for Ciena Corp in terms of dividends and growth is less optimistic, with scores of 1 and 2 respectively. Despite this, the company’s overall profile paints a picture of a company with a solid foundation and growth potential in the communications network industry. Ciena Corporation, known for its development and marketing of communications network platforms and software, is set to continue supporting global network services and telecom providers in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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