NYSE$CIEN

Ciena Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ciena delivered outstanding financial results, demonstrating continued innovation and market leadership amidst an uncertain macro environment.

Ciena reported revenue of $976.7 million for the fiscal third quarter 2020, a 1.7% increase year over year. GAAP net income was $142.3 million, or $0.91 per diluted common share, compared to $86.7 million, or $0.55 per diluted common share, for the fiscal third quarter 2019. Adjusted (non-GAAP) net income was $166.4 million, or $1.06 per diluted common share, compared to $112.3 million, or $0.71 per diluted common share, for the fiscal third quarter 2019.

  • Revenue increased by 1.7% year-over-year to $976.7 million.
  • GAAP net income per share increased to $0.91 from $0.55 in the prior year.
  • Adjusted (non-GAAP) net income per share increased to $1.06 from $0.71 in the prior year.
  • COVID-related market dynamics have resulted in an orders slowdown and are likely to adversely impact revenue for a few quarters.

Headline financials

Total Revenue

$977M

Previous: $961M+1.7%
EPS (adj)

$1.06

Previous: $0.71+49.3%
Capital Expenditures

-$61.3M

Previous: -$49.1M-25.0%
Free Cash Flow

$245M

Previous: $124M+97.5%
Net Income

$142M

Previous: $86.7M+64.0%
Operating Income

$188M

Previous: $125M+50.1%
Gross Profit

$465M

Previous: $424M+9.5%
Cash & Equivalents

$1.09B

Previous: $723M+51.2%
Total Assets

$4.06B

Previous: $3.78B+7.4%
Stock-Based Comp

$17.3M

Previous: $15.1M+14.4%

Revenue & EPS history

Ciena · Revenue · Quarterly

$977M

Q3 2020+1.7%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Ciena · $977M total across 7 segments · Q3 2020

  • Optical Networking
    $723M-0.2%
  • Routing & Switching
    $79.8M+11.1%
  • Maintenance & Support
    $69.1M+4.9%
  • Platform Software & Services
    $46.4M+24.4%
  • Implementation
    $39.8M+0.0%
  • Blue Planet Automation
    $11.3M+7.6%
  • Advisory & Enablement
    $7.8M-29.1%

Forward guidance

Although COVID-related market dynamics have resulted in an orders slowdown and are likely to adversely impact our revenue for a few quarters, we are confident in our ability to continue executing on our strategy and expanding our market leadership.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.8%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+3.7%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+26.1%

Q2 2019

Best reaction

-26.3%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-12.9%-1.8%+30.3%
Q4 2025+9.4%-5.4%+3.9%
Q3 2025+22.8%+28.9%+59.7%
Q2 2025-0.4%+1.0%+15.0%
Q1 2025-2.4%-2.6%-10.9%
Q4 2024+22.6%+20.4%+12.3%
Q3 2024-5.3%-7.0%+20.5%
Q2 2024-5.2%-4.8%-3.0%
Q1 2024-12.4%-16.9%-23.2%
Q4 2023-3.1%-4.8%+1.5%
Q3 2023+12.3%+11.1%+9.5%
Q2 2023-8.9%-12.9%-10.8%
Q1 2023+0.8%+0.9%+5.6%
Q4 2022+17.4%+17.0%+18.9%
Q3 2022-12.8%-15.8%-20.3%
Q2 2022-5.1%-5.3%-11.1%
Q1 2022-11.7%-16.6%-11.8%
Q4 2021+17.9%+18.9%+17.4%
Q3 2021+0.1%-2.2%-8.2%
Q2 2021+10.3%+11.1%+6.5%
Q1 2021-2.0%-0.2%+11.9%
Q4 2020+1.3%+2.9%+12.2%
Q3 2020-26.3%-29.9%-33.2%
Q2 2020-3.6%-2.2%-5.4%
Q1 2020-1.3%-2.6%-3.1%
Q4 2019+16.9%+15.5%+17.6%
Q3 2019-4.1%-3.8%-8.7%
Q2 2019+26.1%+22.7%+19.8%
Q1 2019-6.6%-8.9%-12.4%
Q4 2018+7.5%+3.2%+14.1%
Q3 2018+15.6%+17.4%+14.4%
Q2 2018-2.7%+0.2%+10.2%
Q1 2018+13.2%+15.8%+8.8%
Q4 2017-1.1%+1.9%+1.7%
Q3 2017-9.1%-10.6%-9.5%
Q2 2017+17.1%+13.1%+6.6%
Q1 2017-9.5%-11.1%-16.1%
Q4 2016+14.2%+10.6%+12.0%
Q3 2016+6.7%+7.1%+1.6%
Q2 2016+18.4%+22.5%+4.0%
Q1 2016-16.6%
Q4 2015-17.8%
Q3 2015+0.1%
Q2 2015+2.3%
Q1 2015+2.2%
Q4 2014+6.8%
Q3 2014-5.3%
Q2 2014+17.1%
Q1 2014-5.2%
Q4 2013-5.4%
Q3 2013+13.9%
Q2 2013+21.1%
Q1 2013+14.8%
Q4 2012+0.9%
Q3 2012-18.2%
Q2 2012+6.7%
Q1 2012+10.0%
Q4 2011+7.3%
Q3 2011-8.6%
Q2 2011-6.2%
Q1 2010+2.5%
Q1 2011-1.9%
Q2 2010-5.0%
Q4 2008-5.0%
Q4 2010-5.0%
Q4 2009+3.6%
Q3 2010+3.6%
Q3 2009+3.6%

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