Ciena (CIEN) delivered better-than-expected fiscal third-quarter results for the period ended July 31, 2021. Earnings and revenue came in above consensus estimates. CIEN shares rose 2.87% to close at $58.51 on September 2.
Ciena is a networking system, services, and software company that provides solutions to help customers create adaptive networks.
Fiscal Q3 revenue grew 1.2% year-over-year to $988.1 million and surpassed consensus estimates of $971.56 million. (See Ciena stock charts on TipRanks)
Meanwhile, adjusted net income totaled $144.9 million, a drop from $166.4 million delivered in the same quarter last year. Adjusted earnings per share also fell to $0.92 compared to $1.06 recorded in the same quarter last year. However, fiscal Q3 EPS surpassed consensus estimates of $0.79.
Ciena exited the quarter with inventories worth $370.2 million, along with cash and investments totaling $1.5 billion.
Commenting on the financial results, Ciena CEO Gary Smith stated, “These results combined with a robust demand environment give us confidence that we will deliver our expected strong second half performance.”
During the quarter, the networking systems company repurchased 0.5 million shares of its common stock for $26 million.
Yesterday, Needham analyst Alex Henderson reiterated a Buy rating on the stock with a $65 price target, implying 11.09% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 10 Buys and 3 Holds. The average Ciena price target of $64.62 implies 10.44% upside potential to current levels.
CIEN scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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