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Chief Strategist Talks Ciena Ahead Of Earnings

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Ciena Corporation (NYSE: CIEN) is scheduled to report its second quarter results on Thursday before market open. The Estimize earnings per share consensus estimate (based on six estimates) stands at $0.24 on revenue of $608.33. This compares to the Wall Street consensus estimate that is looking for an earnings per share of $0.24 on revenue of $605.92 million.

Ciena last reported its earnings on March 5. The company earned $0.12 per share in its fourth quarter, exceeding analyst expectations of $0.03 per share. However, revenue of $529.2 million fell short of the $558.78 million analysts were expecting.

Ciena issued first quarter guidance in its previous quarterly report and expects to record revenue of $585 million to $615 million. At that time, analysts were expecting the company to report revenue of $597 million.

Speaking to Benzinga to discuss the options market ahead of Ciena's print, TD Ameritrade's Chief Strategist JJ Kinahan noted that based on historical data, shares have been "pretty stagnant" heading in to the print.

"One of the bigger trades we actually see is the June $23 weekly calls," Kinahan commented. "Somebody opened 1,000 of them so far."

Shares of Ciena were trading at $24.50 Wednesday, up 1.26 percent on the day after trading at fresh 52-week highs of $24.75 earlier in the afternoon.

Kinahan further suggested that based on the large option buying activity, there may be some thoughts among the investment community that Ciena issue a weaker than expected print.

The company's earnings print comes just a day after Jeffrey Kvaal of Nomura initiated coverage of Ciena with a Buy rating and $29 price target. The analyst noted that the company will demonstrate "healthy" growth within the $10 billion optical market.

Latest Ratings for CIEN

DateFirmActionFromTo
Jun 2020Piper SandlerMaintainsOverweight
Jun 2020Morgan StanleyMaintainsEqual-Weight
Jun 2020StifelMaintainsBuy

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