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Earnings Preview: What To Expect From Ciena On Thursday

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Ciena Corp. is scheduled to report earnings before Thursday’s open. The stock hit a record high of $1,056.68/share in 2000 and is currently trading near $43/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

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Earnings Preview:

The company is expected to report a gain of $0.08/share on $846.95 million in revenue. Meanwhile, the so-called Whisper number is $0.10/share. The Whisper number is the Street’s unofficial view on earnings.

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A Closer Look At The Fundamentals:

The company’s earnings have been decelerating in recent quarters which is not ideal for growth investors. In fact, earnings are expected to fall by 53% in 2022 compared to 2021. The good news is that they are expected to grow by 87% in 2023 compared to 2022. The price to earnings ratio is 23 which makes the stock attractive for most investors. Many tech stocks sport much higher P/E ratios.

A Closer Look At The Technicals:

Technically, the stock has been caught in a private bear market and the stock has fallen 45% from its 52-week high. The bears are happy to see the stock steadily decline and they want to see the recent lows broken. Meanwhile, the bulls want to see the stock gap up after earnings and race higher.

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Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Source: Forbes

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