NYSE$CIEN

Ciena Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Ciena's Q4 2021 financial results exceeded expectations, driven by strong execution and effective management of supply chain challenges.

Ciena reported a strong Q4 with revenue of $1.04 billion, a 25.7% increase year-over-year, and GAAP net income per share of $0.66, up 41.7% year-over-year. The company's performance was driven by its ability to manage supply chain issues and continued execution of its strategy. Ciena's Board of Directors authorized a share repurchase program of up to $1.0 billion.

  • Revenue reached $1.04 billion, marking a 25.7% increase compared to the previous year.
  • GAAP net income per share was $0.66, a 41.7% increase year-over-year.
  • Adjusted (non-GAAP) net income per share was $0.85, compared to $0.60 in the prior year.
  • The Board of Directors authorized a share repurchase program of up to $1.0 billion.

Headline financials

Total Revenue

$1.04B

Previous: $828M+25.7%
EPS (adj)

$0.85

Previous: $0.60+41.7%
Days Sales Outstanding

85

Previous: 88-3.4%
Inventory Turns

5

Previous: 4+25.0%
Capital Expenditures

$12.3M

Previous: $21.3M-42.5%
Free Cash Flow

$255M

Previous: $166M+53.6%
Net Income

$104M

Previous: $65M+59.1%
Operating Income

$137M

Previous: $93.5M+47.0%
Gross Profit

$477M

Previous: $404M+18.0%
Cash & Equivalents

$1.42B

Previous: $1.09B+30.7%
Total Assets

$4.87B

Previous: $4.18B+16.4%
Stock-Based Comp

$21.4M

Previous: $16.9M+26.3%

Revenue & EPS history

Ciena · Revenue · Quarterly

$1.04B

Q4 2021+25.7%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Ciena · $1.04B total across 7 segments · Q4 2021

  • Optical Networking
    $755M+30.3%
  • Routing & Switching
    $74.2M+32.5%
  • Maintenance & Support
    $71.3M+6.4%
  • Platform Software & Services
    $66.1M+21.3%
  • Implementation
    $47.2M+9.8%
  • Blue Planet Automation
    $19.8M-5.3%
  • Advisory & Enablement
    $8.3M+6.4%

Forward guidance

Ciena intends to continue driving growth in its business by leveraging its market leadership and investing to capitalize on robust demand dynamics. In addition, its strong balance sheet and cash generation expectations allow the company to increase return of capital to its shareholders.

Tailwinds

  • Continued execution of strategy
  • Demonstrated ability to manage supply chain challenges
  • Leveraging market leadership
  • Investing to capitalize on robust demand dynamics
  • Strong balance sheet and cash generation expectations

Headwinds

  • Effect of broader economic and market conditions on customers and their business
  • Duration and severity of the COVID-19 pandemic and the impact of countermeasures taken to mitigate its spread
  • Changes in network spending or network strategy by customers
  • Seasonality and the timing and size of customer orders, including our ability to recognize revenue relating to such sales
  • The level of competitive pressure encountered

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 Q4 2021

Historical avgQ4 2021

+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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