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Category: Stock Market and Ciena
Date: 16 December 2019 Stock Price: $42.05 We take a look at the 4th quarter earnings for their 2019 fiscal year of Ciena, the networking systems, services and software company.
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About Ciena
Ciena (NYSE: CIEN) is a networking systems, services and software company. We provide solutions that help our clients create the Adaptive Network™ in response to the constantly changing demands of their users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale.
Overview of Ciena's 4th quarter 2019 earnings report
Numbers we are interested in for the quarter:
- Total revenue: $967.987 million (up from $899.356 million for the same quarter of the previous year)
- Total revenue increased by 7.6% over the last 12 months
- Total revenue increased by 7.6% over the last 12 months
- Cost of goods sold : $548.291 million (up from $501.281 million for the same quarter of the previous year)
- Cost of goods sold increased by 9.4% over the last 12 months
- Cost of goods sold increased by 9.4% over the last 12 months
- Net income: $80.331 million (up from $63.977 million for the same quarter of the previous year)
- Diluted earnings per share: $0.51 (up from $0.34 for the same quarter of the previous year)
- Diluted shares in issue: 156.612 million (down from the 157.745 million for the same quarter of the previous year)
- Cash and cash equivalents: $904.045 million
- Cash and cash equivalents per share: $5.77
- Cash and cash equivalents makes up 13.7% of Ciena's current market capital
- Cash and cash equivalents makes up 23.2% of Ciena's total assets
- Inventories: $ 345.049 million
- Inventories makes up 8.86% of the Ciena's total assets
- Accounts receivables: $724.854 million
- Accounts receivables makes up 18.6% of Ciena's total assets.
- Cash generated from operations for the full fiscal 2019: $413.140 million
- Cash generated from operations per share for full fiscal 2019: $2.63
- Total stockholders equity in Ciena Corporation: $2.172 billion
- Stockholders equity per share: $13.86
- Ciena Corporation is trading at 3.03 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at.
Ciena's management commentary on the results and earnings guidance
HANOVER, Md.--(BUSINESS WIRE)-- Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal fourth quarter and year ended October 31, 2019.
- Q4 Revenue : $968.0 million, increasing 7.6% year over year
- Q4 Net Income per Share: $0.51 GAAP; $0.58 adjusted (non-GAAP)
- Share Repurchases: Repurchased approximately 1.0 million shares of common stock for an aggregate price of $38.2 million during the quarter
"Our outstanding Q4 financial performance rounded out an extraordinary year of industry-leading growth and profitability," said Gary Smith, President and CEO, Ciena. "Our innovation, diversification and scale uniquely position us to continue taking share while delivering improved operating margin and driving sustained EPS growth in 2020."
For the fiscal fourth quarter 2019, Ciena reported revenue of $968.0 million as compared to $899.4 million for the fiscal fourth quarter 2018. For fiscal year 2019, Ciena reported revenue of $3.57 billion, as compared to $3.09 billion for fiscal year 2018
Share Repurchase Program
During fiscal year 2019, Ciena repurchased approximately 3.8 million shares of its common stock at an average price of $39.10 per share for an aggregate purchase price of $150.1 million. Ciena may purchase shares at management's discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. Ciena may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended or discontinued at any time.
For the fiscal fourth quarter 2019, Ciena reported revenue of $968.0 million as compared to $899.4 million for the fiscal fourth quarter 2018. For fiscal year 2019, Ciena reported revenue of $3.57 billion, as compared to $3.09 billion for fiscal year 2018
Share Repurchase Program
During fiscal year 2019, Ciena repurchased approximately 3.8 million shares of its common stock at an average price of $39.10 per share for an aggregate purchase price of $150.1 million. Ciena may purchase shares at management's discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. Ciena may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended or discontinued at any time.
Ciena (NYSE: CIEN) stock price history
The image below, obtained from Google, shows the stock price history of Ciena for the last 5 years. 5 years ago the stock was trading at $19.36 a stock and its currently trading at $42.05. That's a strong return of % provided to Ciena Corporation over the last 5 years. Looking at the current stock price we also see it is trading at a lot closer to its 52 week high of $46.78 than it is to its 52 week low of $30.77 which to us is an indication that the short term sentiment and momentum of Ciena Corporation's stock is positive.
Recent coverage of Ciena
The extract below covers the latest regarding Ciena as obtained from TheStreet.com
Ciena (CIEN) - Get Report shares jumped double digits Thursday even after the networking-equipment and -services provider missed analysts' fiscal-fourth-quarter earnings estimates. For the quarter ended Oct. 31 the Hanover, Md., company earned 51 cents a share, up 50% from 34 cents in the year-earlier quarter. Adjusted earnings were 58 cents against 53 cents. Revenue rose 7.6% to $968 million.
Analysts surveyed by FactSet were expecting the company to report earnings of 63 cents a share on revenue of $964.3 million. For the fiscal first quarter, Ciena guided investors to expect revenue of $805 million to $835 million. Analysts polled by FactSet are expecting $823 million. For the year, the company sees full year revenue of $3.79 billion, in line with expectations.
Read the full article here
Ciena (CIEN) - Get Report shares jumped double digits Thursday even after the networking-equipment and -services provider missed analysts' fiscal-fourth-quarter earnings estimates. For the quarter ended Oct. 31 the Hanover, Md., company earned 51 cents a share, up 50% from 34 cents in the year-earlier quarter. Adjusted earnings were 58 cents against 53 cents. Revenue rose 7.6% to $968 million.
Analysts surveyed by FactSet were expecting the company to report earnings of 63 cents a share on revenue of $964.3 million. For the fiscal first quarter, Ciena guided investors to expect revenue of $805 million to $835 million. Analysts polled by FactSet are expecting $823 million. For the year, the company sees full year revenue of $3.79 billion, in line with expectations.
Read the full article here
Ciean (NYSE: CIEN) latest stock valuation
So based on American Eagle Outfitters latest earnings report what do we value the stock price at? Based on the group's latest earnings report and their fiscal guidance provided our valuation model provides a target price (full value price) for American Eagle Outfitters at $21.80 a stock. We therefore believe American Eagle Outfitters stock is undervalued and we expect the stock price to tick upwards in coming weeks and months.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $21.80. A good entry point into the stock of American Eagle Outfitters would therefore be at $19.60 or below.
Since the stock of American Eagle Outfitters is trading at well below our suggested entry point into the stock we rate the stock of American Eagle Outfitters as a buy
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $21.80. A good entry point into the stock of American Eagle Outfitters would therefore be at $19.60 or below.
Since the stock of American Eagle Outfitters is trading at well below our suggested entry point into the stock we rate the stock of American Eagle Outfitters as a buy
Next earnings release of Ciena Corporation
It is expected that Ciena Corporation will release their 1st quarter 2020 earnings report in early March 2020