NYSE$CIEN

Ciena Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Ciena's Q4 2022 financial results exceeded expectations due to favorable supply chain developments, with strong revenue and earnings per share.

Ciena reported strong fiscal fourth quarter financial results, exceeding expectations due to favorable supply chain developments. The company's revenue was $971.0 million, and net income per share was $0.39 on a GAAP basis and $0.61 on a non-GAAP basis. Ciena expects to deliver outsized revenue growth in fiscal 2023, driven by a significant backlog and continued signs of gradual supply improvement.

  • Q4 revenue reached $971.0 million.
  • GAAP net income per share was $0.39, while adjusted (non-GAAP) net income per share was $0.61.
  • The company repurchased approximately 154,200 shares of common stock for an aggregate price of $8.0 million during the quarter.
  • Ciena anticipates outsized revenue growth in fiscal 2023 due to a substantial backlog and improving supply chain conditions.

Headline financials

Total Revenue

$971M

Previous: $1.04B-6.7%
EPS (adj)

$0.61

Previous: $0.85-28.2%
Capital Expenditures

$23.9M

Previous: $12.3M+95.0%
Free Cash Flow

-$38.4M

Previous: $255M-115.1%
Net Income

$57.6M

Previous: $104M-44.3%
Operating Income

$77.3M

Previous: $137M-43.8%
Gross Profit

$434M

Previous: $477M-9.1%
Cash & Equivalents

$994M

Previous: $1.42B-30.1%
Total Assets

$5.07B

Previous: $4.87B+4.2%
Stock-Based Comp

$27.3M

Previous: $21.4M+27.8%

Revenue & EPS history

Ciena · Revenue · Quarterly

$971M

Q4 2022-6.7%vs Q4 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Ciena · $971M total across 7 segments · Q4 2022

  • Optical Networking
    $650M-13.9%
  • Routing and Switching
    $103M+38.5%
  • Maintenance, Support, and Learning
    $73.1M+2.5%
  • Platform Software and Services
    $71.6M+8.3%
  • Implementation
    $36.9M-21.8%
  • Blue Planet Automation Software and Services
    $21.2M+7.1%
  • Advisory and Enablement
    $15.5M+86.7%

Forward guidance

Ciena expects to deliver outsized revenue growth in fiscal 2023 given its significant backlog and continued signs of gradual supply improvement. The company remains confident that the durability of secular demand drivers and its strategic investments to expand its addressable market position them to deliver strong revenue growth over the next several years.

Tailwinds

  • Anticipates outsized revenue growth in fiscal 2023.
  • Significant backlog expected to contribute to future revenue.
  • Continued signs of gradual supply improvement.
  • Durability of secular demand drivers.
  • Strategic investments to expand addressable market.

Headwinds

  • Effect of broader economic and market conditions on our customers and their business
  • Impact of supply chain constraints or disruptions
  • Changes in network spending or network strategy by our customers
  • Level of competitive pressure we encounter
  • Changes in foreign currency exchange rates

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+1.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+3.7%

Avg return

30 days after

51%

35 / 69 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
Q2 2026-13.8%-29.5%
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%
Q3 2010+3.6%
Q4 2009+3.6%
Q3 2009+3.6%

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