Ciena Q2 Preview: Analyst Ups Price Target Ahead Of Likely Beat-And-Raise Quarter

Ciena Corp CIEN will report its second-quarter results on Thursday, June 5, before the market opens.

According to Rosenblatt Securities, the company is likely to report healthy results and guidance, slightly ahead of consensus, "driven by strong Cloud Provider revenues and orders and solid Service Provider revenue and orders."

The Ciena Analyst: Analyst Mike Genovese reaffirmed a Neutral rating, while raising the price target from $65 to $85.

The Ciena Thesis: The company is likely to report its revenue slightly higher than expectations of $1.09 billion, representing 20% year-on-year growth and 2% sequential growth, Genovese said in the note.

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Ciena could keep its backlog consistent with the prior quarter, at $2.3 billion, "or even slightly growing backlog, due to strong orders," he added.

The consensus estimates for gross margin, operating margin and earnings are 42.6%, 10.0% and 52 cents per share, all of which "look slightly beatable," the analyst stated.

"We think the company may raise its FY25 revenue guidance slightly above 8% to 11%, but we do not expect it to increase the 3-year guidance yet as it likely works to keep expectations in check until it is closer to launching initial Data Center transceiver products in 2H26," he further wrote.

CIEN Price Action: Shares of Ciena had risen by 0.73% to $82.35 at the time of publication on Tuesday.

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• Ciena Posts Solid Q1 Beat, Raise; Guidance Could Be Missed Depending On ‘Outcome Of Proposed Tariffs’

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