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Market Overview

Ciena Earnings Preview

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Ciena (NYSE:CIEN) announces its next round of earnings this Thursday, March 04. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.45 and sales around $749.93 million. Ciena EPS in the same period a year ago totaled $0.52. Sales were $832.91 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 13.46% decrease in the company's earnings. Revenue would be down 9.96% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.63 0.83 0.49 0.38
EPS Actual 0.60 1.06 0.76 0.52
Revenue Estimate 825.36 M 971.77 M 880.32 M 819.79 M
Revenue Actual 828.48 M 976.71 M 894.05 M 832.91 M

Stock Performance

Shares of Ciena were trading at $51.56 as of March 02. Over the last 52-week period, shares are up 19.52%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ciena is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings